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Four Products Are Manufactured by MNO -Each of the Four Products Takes Two Production Hours

Question 8

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Four products are manufactured by MNO:  Maxi  Midi  Mini  Micro  Selling price per unit 600400300250 Variable labour costs per unit ($40/hour)  25012014090 Variable material costs per unit 275250100110\begin{array} { | l | r | r | r | r | } \hline & \text { Maxi } & \text { Midi } & \text { Mini } & \text { Micro } \\\hline \text { Selling price per unit } & 600 & 400 & 300 & 250 \\\hline \text { Variable labour costs per unit (\$40/hour) } & 250 & 120 & 140 & 90 \\\hline \text { Variable material costs per unit } & 275 & 250 & 100 & 110 \\\hline\end{array}
-Each of the four products takes two production hours. Assuming production hours as the overall capacity constraint, the ranking order of products for MNO to maximise its profitability is:


A) Maxi, Midi, Mini, Micro
B) Maxi, Mini, Micro, Midi
C) Micro, Mini, Maxi, Midi
D) Micro, Midi, Maxi, Mini

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