Manico Corporation Produces Three Products -- X, Y, & Z

Multiple Choice

Manico Corporation produces three products -- X, Y, & Z -- with the following characteristics: 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