Darren Company Produces Three Products with the Following Costs and Selling

question 139

Multiple Choice

Darren Company produces three products with the following costs and selling prices:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Products }$
$\begin{array}{lrrrrr}&\text {X}&\text {Y}&\text {Z}\\\text { Selling price per unit } & \$ 40 & \$ 30 & \$ 35 \\\text { Variable costs per unit } & 24 & 16 & 20 \\ \text { Contribution margin per unit } & \$ 16 & \$ 14 & \$ 15\\\text { Direct labor hours per unit } & 4 & 2 & 3 \\\text { Machine hours per unit } & 5 & 7 & 4\end{array}$

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If Darren has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:

• A) Y, Z, X.
• B) X, Y, Z.
• C) X, Z, Y.
• D) Z, X, Y.

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Definitions:

Two

The numerical value representing a quantity equal to one plus one, often considered in contexts of comparison or difference.

Drafting

The preliminary stage of writing or drawing up documents, plans, designs, or legislation before they are finalized.

Research

the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Surveying

The act of examining and recording the features of a piece of land to accurately define its boundaries and create maps or plots.