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Which order would the company produce and sell each

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Reference no: EM132581169

ABCD Inc. produces 4 products. Information pertaining to each of these products is shown below:

Product                          A             B             C              D

Selling Price               $20          $18        $12       $18

Variable Cost                $12           $6           $9       $8

Contribution Margin       $8                 $12      $3      $10

Machine Hours req/unit:  2.5                 1.5         1        .3

Question 1: ABCD's machine hours are a constrained resource. Assuming that the company could sell as much of each product as it produces, in which order would the company produce and sell each of its products to maximize profits?

Option a) A,B,C,D

Option b) A,B,D,C

Option c) C,B,A,D

Option d) B,D,A,C

Reference no: EM132581169

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