Manico Corporation produces three products - X, Y, & Z - with the following characteristics: The company has only 2, 000 machine-hours available each month.If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin?
A)orders for Z first, X second, and Y third
B)orders for X first, Z second, and Y third
C)orders for Y first, X second, and Z third
D)orders for Z first and no orders for X or Y

Question

Manico Corporation produces three products - X, Y, & Z - with the following characteristics:  The company has only 2, 000 machine-hours available each month.If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin?
A)orders for Z first, X second, and Y third 
B)orders for X first, Z second, and Y third 
C)orders for Y first, X second, and Z third 
D)orders for Z first and no orders for X or Y

Quizplus · Accepted Answer

The Answer of Manico Corporation produces three products - X, Y, & Z - with the following characteristics:  The company has only 2, 000 machine-hours available each month.If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin?
A)orders for Z first, X second, and Y third 
B)orders for X first, Z second, and Y third 
C)orders for Y first, X second, and Z third 
D)orders for Z first and no orders for X or Y

Manico Corporation Produces Three Products - X, Y, & Z