Stanley Inc has 5,400 machine hours available each month. The following information on the company's three products is available: Product 1 Product 2 Product 3 Contribution margin per unit $ 15.00 $ 18.00 $ 7.50 Machine hours per unit 3 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.
Stanley Inc has 5,400 machine hours available each month. The following information on the company's three products is available: Product 1 Product 2 Product 3 Contribution margin per unit $ 15.00 $ 18.00 $ 7.50 Machine hours per unit 3 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 24BEB: Use the following information for Brief Exercises 11-23 and 11-24: Theta Company has the following...
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Transcribed Image Text:Stanley Inc has 5,400 machine hours available each month. The following information on the
company's three products is available:
Product 1
Product 2
Product 3
Contribution margin per unit
$
15.00
$
18.00
$
7.50
Machine hours per unit
3
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.
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