Reference no: EM132612128
Four products are manufactured in a labor-intensive process by XYZ:
Alpha Beta Gamma Delta
Selling price per unit 100 150 90 200
Variable costs per unit 45 85 30 110
Labor hours 2 4 3 4
Question 1: Assuming an overall capacity constraint, what is the ranking order of products for XYZ to produce to maximize its profitability:
a) Beta, Gamma, Alpha, Delta
b) Delta, Beta, Gamma, Alpha
c) Alpha, Delta, Gamma, Beta
d) Gamma, Alpha, Delta, Beta
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