Xenos Inc has 6,600 machine hours available each month.The following information on the company's three products is available: \[\begin{array} { | l | r | r | r | } \hline & \text { Product } & \text { Product } & \text { Product } \\ & 1 & 2 & 3 \\ \hline \text { Contribution margin per } & \$ 20.00 & \$ 21.00 & \$ 17.50 \\ \text { unit } & & & \\ \hline \text { Machine hours per unit } & 2 & 3 & 2 \\ \hline \end{array}\] If market demand exceeds the available capacity,in what sequence should orders be filled to maximize the company's profits?

A) Product X first,product Z second,and product Y third. B) Product Y first,product Z second,and product X third. C) Product Y first,product X second,and product Z third. D) Product Z first,product X second,and product Y third. A) Product X first,product Z second,and product Y third. B) Product Y first,product Z second,and product X third. C) Product Y first,product X second,and product Z third. D) Product Z first,product X second,and product Y third. A

The Valor Company manufactures two products: L and M.The costs and revenues are as follows: \[\begin{array} { | l r | r | } \hline & \text { Product L } & \text { ProductM } \\ \hline \text { Sales price } & \$ 150 & \$ 112 \\ \hline \text { Variable cost per unit } & 90 & 68 \\ \hline \text { Machine hours per unit } & 15 & 10 \\ \hline \end{array}\] Total demand for Product L is 2,000 units and for Product M is 1,000 units.Machine time is a scarce resource.During the year,36,000 machine hours are available.Required: a.How many units of Products L and M should Valor produce?

@#IMG-DLM& a.L = 1,733;M = 1,000 CM/hr:

The Hammer Division of Excel Company produces hardened sledge hammers.One-third of Hammer's output is sold to the Government Products Division of Excel;the remainder is sold to outside customers.Hammer's estimated operating profit for the year is: \[\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Govemment } \\ \text { Products } \\ \text { Disision } \end{array} & \begin{array} { r } \text { Outside } \\ \text { Customers } \end{array} \\ \hline \text { Sales } & \$ 15,000 & \$ 40,000 \\ \hline \text { Variable costs } & ( 10,000 ) & ( 20,000 ) \\ \hline \text { Fixed costs } & \underline { ( 3,000 ) } & \underline { ( 6,000 ) } \\ \hline \text { Operating protits } & \$ 2,000 & \$ 14,000 \\ \hline \text { Unit sales } & 10,000 & 20,000 \\ \hline \end{array}\] The Government Products Division has an opportunity to purchase 10,000 hammers of the same quality from an outside supplier on a continuing basis.The Hammer Division cannot sell any additional products to outside customers.Should the Excel Company allow its Government Products Division to purchase the hammers from the outside supplier at $1.25 per unit?

A) No;making the hammers will save Excel $1,500. B) Yes;buying the hammers will save Excel $1,500. C) No;making the hammers will save Excel $2,500. D) Yes;buying the hammers will save Excel $2,500. A) No;making the hammers will save Excel $1,500. B) Yes;buying the hammers will save Excel $1,500. C) No;making the hammers will save Excel $2,500. D) Yes;buying the hammers will save Excel $2,500.