Warrior Inc If Market Demand Exceeds the Available Capacity, in What Sequence

question 99

Multiple Choice

Warrior Inc. has 12,000 machine hours available each month. The following information on the company's four products is available:
$\begin{array}{lrrrrrr}&\text { Product W }&\text { Product X }&\text { Product Y }&\text { ProductZ}&\\\text { Selling price per unit } & \$ 20.00 & \$ 21.00 & \$ 17.50 & \$ 15.00 \\\text { Variable cost per unit } & \$ 10.00& \$ 9.00 & \$ 7.50 & \$ 10.00 \\\text { Machine hours per unit } & 2 & 3 &4 &1.5 \\\end{array}$

If market demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits?

• A) Product W first, product X second, product Z third, and product Y last.
• B) Product Z first, product W second, product X third, and product Y last.
• C) Product X first, product W second, product Y third, and product Z last.
• D) Product X first, product Z second, product Y third, and product W last.

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