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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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