Suzy Co. produces and sells three products (X, Y, and Z). The following data relate to the three products:$\begin{array}{lrrrrr}&X&Y&Z\
\text { Demand in units } & 160 & 150 & 140 \
\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \
\text { Raw materials costs per unit } & \$ 65 & \$ 80 & \$ 90 \
\text { Labor time in minutes per unit } & 10 & 20 & 10
\end{array}$Which is the most profitable product if there is no constraint on labor time?
A) Product X.
B) Product Y.
C) Product Z.
D) More than one of the products has equal total throughput margin per labor minute.
E) There isn't enough information to answer the question.

Question

Suzy Co. produces and sells three products (X, Y, and Z). The following data relate to the three products:$\begin{array}{lrrrrr}&X&Y&Z\
\text { Demand in units } & 160 &  150 &  140 \
\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \
\text { Raw materials costs per unit } & \$  65 & \$ 80 & \$  90 \
\text { Labor time in minutes per unit } & 10 &  20 &  10
\end{array}$Which is the most profitable product if there is no constraint on labor time?
A) Product X.
B) Product Y.
C) Product Z.
D) More than one of the products has equal total throughput margin per labor minute.
E) There isn't enough information to answer the question.

Quizplus · Accepted Answer

The Answer of Suzy Co. produces and sells three products (X, Y, and Z). The following data relate to the three products:$\begin{array}{lrrrrr}&X&Y&Z\
\text { Demand in units } & 160 &  150 &  140 \
\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \
\text { Raw materials costs per unit } & \$  65 & \$ 80 & \$  90 \
\text { Labor time in minutes per unit } & 10 &  20 &  10
\end{array}$Which is the most profitable product if there is no constraint on labor time?
A) Product X.
B) Product Y.
C) Product Z.
D) More than one of the products has equal total throughput margin per labor minute.
E) There isn't enough information to answer the question.

Suzy Co Produces and Sells Three Products (X, Y, and Z)