Solved

Sienna Company Produces Earrings,bracelets,and Necklaces That Are in High Demand

Question 137

Multiple Choice

Sienna Company produces earrings,bracelets,and necklaces that are in high demand.Following is information for each of these products:
 Ear rings  Bracelets  Necklaces  Selling price per item $16.75$18.50$25.60 Variable cost per item 14.0013.5019.20 Contribution margin per item $2.75$5.00$6.40 Machine hours per item .511.2\begin{array}{lrrr} & \underline{\text { Ear rings }} & \underline{\text { Bracelets }} & \underline{\text { Necklaces }} \\\text { Selling price per item } & \$ 16.75 & \$ 18.50 & \$ 25.60 \\\text { Variable cost per item } & \underline{14.00} & \underline{13.50} & \underline{19.20} \\\text { Contribution margin per item } & \underline{\underline{\$ 2.75}} & \underline{\underline{\$ 5.00}} & \underline{\underline{\$ 6.40}} \\\text { Machine hours per item } & .5 &1 & 1.2\end{array}
Sienna has 2,000 machine hours available each month.Demand for each item exceeds Sienna's capacity to produce the item.In order to maximize the company's total contribution margin,in what sequence should Sienna fill orders for the three products?


A) Necklaces first,then bracelets,then earrings.
B) Earrings first,then necklaces,then bracelets.
C) Bracelets first,then earrings,then necklaces.
D) Necklaces first,then earrings,then bracelets.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents