Pasture Corporation processes all of its products through a lathe machine. The lathe is only available for 60 hours per week and is the constraint for all of the products. Data regarding Pasture Corporation's three products follows:
In what order should Pasture Corporation emphasize its products to maximize its contribution margin? (Rank the products in order from most profitable to least profitable in terms of contribution margin per unit of capacity.)

Question

Pasture Corporation processes all of its products through a lathe machine. The lathe is only available for 60 hours per week and is the constraint for all of the products. Data regarding Pasture Corporation's three products follows: 
 In what order should Pasture Corporation emphasize its products to maximize its contribution margin? (Rank the products in order from most profitable to least profitable in terms of contribution margin per unit of capacity.)

Quizplus · Accepted Answer

D)
 11ea895a_9381_2e13_861b_4f55030076f0_TB1238_00

Pasture Corporation Processes All of Its Products Through a Lathe