If Hitec has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produoed in which order? Y. ZX

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Hitec industries produces three products with the following costs and selling prices:
Product
Y
Selling price per unit
P40
P30
P35
Variable costs per unit
24
18
20
Contribution margin per unit
18
14
15
Direct labor hours per unit
3
Machine hours per unit
7
4
If Hitec has a limit of 30,000 machine hours but no limit on units sold or direct labor hours,
then the three products should be produced in which order?
Y. Z, X
X, Y, Z
X, Z, Y
Z, X, Y
2.
Transcribed Image Text:Hitec industries produces three products with the following costs and selling prices: Product Y Selling price per unit P40 P30 P35 Variable costs per unit 24 18 20 Contribution margin per unit 18 14 15 Direct labor hours per unit 3 Machine hours per unit 7 4 If Hitec has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order? Y. Z, X X, Y, Z X, Z, Y Z, X, Y 2.
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