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WJE Company Has Only 4,000 Machine Hours Available Each Month

Question 36

Multiple Choice

WJE Company has only 4,000 machine hours available each month. The following information on the company's three products is available:  Product  Product  Product  AA  B B  CC  Contribution margin per unit £10£13£5 Machine hours per unit 21.50.5\begin{array}{lccc}&\text { Product } & \text { Product } & \text { Product } \\&\text { AA } & \text { B B } & \text { CC } \\\text { Contribution margin per unit } & £ 10 & £ 13 & £ 5 \\\text { Machine hours per unit } & 2 & 1.5 & 0.5\end{array} If demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits?


A) Product AA first, Product BB second, and Product CC third
B) Product BB first, Product AA second, and Product CC third
C) Product CC first, Product BB second, and Product AA third
D) Product CC first, Product AA second, and Product BB third

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