Current Attempt in Progress
Cullumber Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics:
\begin{tabular}{lccc}
& \multicolumn{1}{c}{ Standard } & Deluxe & Superior \\
\cline { 2 - 4 } Selling price per unit & \( \$ 37 \) & \( \$ 35 \) & \( \$ 34 \) \\
Variable cost per unit & 27 & 28 & 28 \\
\cline { 2 - 4 } \begin{tabular}{l}
Contribution margin \\
per unit
\end{tabular} & \( \$ 10 \) & \( \$ 7 \) & \( \$ 6 \) \\
\cline { 2 - 4 } Machine hours per unit & 2 & 2 & 2
\end{tabular}
The company has only 1940 machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
Deluxe first, Standard second, Superior third
Standard first, Deluxe second, Superior third
Standard first, Superior second, Deluxe third
Superior first, Standard second, Deluxe third
