Centrum industries has total of 5,400 machine hours available for a month The following information is given: Product 1 Product 2 Product 3 Contribution margin per unit P 15.00 P 18.00 7.50 Machine hours per unit 3 2 1 If market demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits? a. Product 3 first, product 2 second, and product 1 third. b. Product 2 first, product 3 second, and product 1 third. c. Product 3 first, product 1 second, and product 2 third. d. Product 1 first, product 2 second, and product 3 third.
Centrum industries has total of 5,400 machine hours available for a month The following information is given: Product 1 Product 2 Product 3 Contribution margin per unit P 15.00 P 18.00 7.50 Machine hours per unit 3 2 1 If market demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits? a. Product 3 first, product 2 second, and product 1 third. b. Product 2 first, product 3 second, and product 1 third. c. Product 3 first, product 1 second, and product 2 third. d. Product 1 first, product 2 second, and product 3 third.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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