Manico Corporation produces three products - X, Y, & Z - with the following characteristics:...
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Finance
Manico Corporation produces three products - X, Y, & Z - with the following characteristics:
X
Y
Z
Selling price per unit
$20
100%
$16
100%
$15
100%
Variable cost per unit
12
60%
12
75%
6
40%
Contribution margin per unit
$ 8
40%
$ 4
25%
$ 9
60%
Machine hours per unit
5
3
6
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?
orders for Z first and no orders for X or Y
orders for Y first, X second, and Z third
orders for Z first, X second, and Y third
orders for X first, Z second, and Y third
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