An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below. LN JQ $168.82 $313.84 $403.08 $139.72 $245.80 $287.56 4. 20 RQ Selling price per unit Variable cost per unit Minutes on the constraint 1.50 7.60 Rank the products in order of their current profitability from most profitable to least profitable, In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 decimal places.)
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below. LN JQ $168.82 $313.84 $403.08 $139.72 $245.80 $287.56 4. 20 RQ Selling price per unit Variable cost per unit Minutes on the constraint 1.50 7.60 Rank the products in order of their current profitability from most profitable to least profitable, In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Jordison Corporation Profitability Analysis
An automated turning machine is currently a production constraint at Jordison Corporation. Three products utilize this constrained resource. The table below provides data concerning these products:
| | LN | JQ | RQ |
|-----------------------|----------|----------|----------|
| **Selling price per unit** | $168.82 | $313.84 | $403.08 |
| **Variable cost per unit** | $139.72 | $245.80 | $287.56 |
| **Minutes on the constraint** | 1.50 | 4.20 | 7.60 |
**Task:**
Rank the products in order of their current profitability from most profitable to least profitable based on the constraint. This ranking indicates the order in which the products should be emphasized.
*(Round your intermediate calculations to 2 decimal places.)*
**Multiple Choice Options:**
- a. LN, JQ, RQ
- b. RQ, LN, JQ
- c. RQ, JQ, LN
- d. JQ, RQ, LN
This exercise helps in understanding how to prioritize products based on profitability and resource constraints.
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