Four Products Are Manufactured by MNO -Applying the Theory of Constraints and a Throughput Accounting Approach

Multiple Choice

Four products are manufactured by MNO: $$\begin{array} { | l | r | r | r | r | } \hline & \text { Maxi } & \text { Midi } & \text { Mini } & \text { Micro } \\\hline \text { Selling price per unit } & 600 & 400 & 300 & 250 \\\hline \text { Variable labour costs per unit (\$40/hour) } & 250 & 120 & 140 & 90 \\\hline \text { Variable material costs per unit } & 275 & 250 & 100 & 110 \\\hline\end{array}$$
-Applying the theory of constraints and a throughput accounting approach, and assuming labour to be the bottleneck constraint, the ranking order of products for MNO to maximise its profitability within the labour constraint is:

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