o maximize its total contribution margin

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5
米
Manico Company produces three products-X, Y, & Z-with the following characteristics:
Selling price per unit
$20
$16
$15
Variable cost per unit 8
12
6.
Contribution margin
$12
6$
per unit
Machine hours per
4.
6.
unit
The company has only 2,000 machine-hours available each month. In what sequence should orders be filled
if the company wants to maximize its total contribution margin?
Select one:
O Y,X then Z
O Zz, X, then Y.
OX,Y then Z
X, Z then Y
e here to search
61
81
f6
fs
f4
%24
4.
0O
2.
\/4
%23
6.
3.
R.
Transcribed Image Text:5 米 Manico Company produces three products-X, Y, & Z-with the following characteristics: Selling price per unit $20 $16 $15 Variable cost per unit 8 12 6. Contribution margin $12 6$ per unit Machine hours per 4. 6. unit The company has only 2,000 machine-hours available each month. In what sequence should orders be filled if the company wants to maximize its total contribution margin? Select one: O Y,X then Z O Zz, X, then Y. OX,Y then Z X, Z then Y e here to search 61 81 f6 fs f4 %24 4. 0O 2. \/4 %23 6. 3. R.
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