Question

Marley Corporation makes three products (X, Y, & Z) with the following characteristics: Products X Y Z Selling price per unit $ 10 $ 15 $ 20 Variable cost per unit $ 8 $ 11 $ 10 Machine hours per unit 2 4 10 The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, which product should be produced (choose the best option)? a. Product Z is more profitable than the others, so only product Z should be produced b. Product Y is more profitable than the others, so only product Y should be produced c. Product X is more profitable than the others, so only product X should be produced d. All products (X, Y, and Z) are equally profitable, so any product can be produced

          Marley Corporation makes three products (X, Y, & Z) with the
following characteristics:
Products
X	Y	Z
Selling price per unit	$ 10	$ 15	$ 20
Variable cost per unit	$ 8	$ 11	$ 10
Machine hours per unit	2	4	10
The company has a capacity of 2,000 machine hours, but there is
virtually unlimited demand for each product. In order to maximize
total contribution margin, which product should be produced
(choose the best option)?
a. Product Z is more profitable than the others, so only
product Z should be produced
b. Product Y is more profitable than the others, so only
product Y should be produced
c. Product X is more profitable than the others, so only
product X should be produced
d. All products (X, Y, and Z) are equally profitable, so any
product can be produced

Marley Corporation makes three products (X, Y, Z) with the
following characteristics:
Products
X Y Z
Selling price per unit 10 15 20
Variable cost per unit 8 11 10
Machine hours per unit 2 4 10
The company has a capacity of 2,000 machine hours, but there is
virtually unlimited demand for each product. In order to maximize
total contribution margin, which product should be produced
(choose the best option)?
a. Product Z is more profitable than the others, so only
product Z should be produced
b. Product Y is more profitable than the others, so only
product Y should be produced
c. Product X is more profitable than the others, so only
product X should be produced
d. All products (X, Y, and Z) are equally profitable, so any
product can be produced

Added by Gina R.

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