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Manico Company Produces Three Products-X,Y,& Z-With the Following Characteristics The Company Has Only 2,000 Machine Hours Available Each Month

Question 22

Multiple Choice

Manico Company produces three products-X,Y,& Z-with the following characteristics:
XYZ Selling price per unit $20100%$16100%$15100% Variable cost per unit 12601275640 Contribution margin per unit $840%$425%$960%=== Machine hours per unit 536\begin{array}{|l|r|r|r|}\hline & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\\hline \text { Selling price per unit } & \$ 20100 \% & \$ 16100 \% & \$ 15100 \% \\\hline \text { Variable cost per unit } & \underline{1260} & \underline{1275} & \underline{640} \\\hline \text { Contribution margin per unit } & \$ 840 \% & \$ 425 \% & \$ 960 \% \\\hline&=&=&=\\\hline \text { Machine hours per unit }&5&3&6\\\hline\end{array}
The company has only 2,000 machine hours available each month.If demand exceeds the company's capacity,in what sequence should orders be filled if the company wants to maximize its total contribution margin?


A) Orders for Z first, X second, and Y third.
B) Orders for X first, Z second, and Y third.
C) Orders for Y first, X second, and Z third.
D) Orders for Z first and no orders for X or Y.

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