Story Corp.produces three products,and currently has a shortage of machine hours since one of its two machines is down - only 460 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
a.In what order should Story prioritize production of the products?
b.How many of each product should be sold while the machine is down to maximize profit?
c.What is the total contribution margin if Story prioritizes production according to its limited resources?

Question

Story Corp.produces three products,and currently has a shortage of machine hours since one of its two machines is down - only 460 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
  a.In what order should Story prioritize production of the products?
b.How many of each product should be sold while the machine is down to maximize profit?
c.What is the total contribution margin if Story prioritizes production according to its limited resources?

Quizplus · Accepted Answer

The Answer of Story Corp.produces three products,and currently has a shortage of machine hours since one of its two machines is down - only 460 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows:
  a.In what order should Story prioritize production of the products?
b.How many of each product should be sold while the machine is down to maximize profit?
c.What is the total contribution margin if Story prioritizes production according to its limited resources?