Contribution Margin Assignment | Top Universities

Manico Co produces three products, X,Y, and Z, with the following characteristics: Selling price/unit: X $20, Y $16, Z $15; Variable cost/ unit: X$12, Y, $12, Z $6; Contribution margin/unit: X $8, Y$4, Z $9; Machine hours/unit: X 5, Y 3, Z 6.

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The company has only 2,000 machine hours available each month If demand exceeds the company’s capacity, in what sequence should order for the three products be filled to maximize total contribution margin? Get Accounting homework help today