Reference: 09-15
Madison Company Produces Three Products with the Following

question 42

Multiple Choice

Reference: 09-15
Madison Company produces three products with the following costs and selling prices: $$\begin{array} { | l | l | l | l | } \hline & A & B & C \\\hline \text { Selling price per unit } & \$ 16 & \$ 21 & \$ 21 \\\hline \text { Variable cost per unit } & 7 & 11 & 13 \\\hline \text { Contribution margin per unit } & \$ 9 & \$ 10 & \$ 8 \\\hline \text { Direct labour hours per unit } & 1.0 & 1.5 & 2.0 \\\hline \text { Machine hours per unit } & 4.5 & 2.0 & 2.5 \\\hline\end{array}$$
-If direct labour-hours are the company's production constraint, then the three products should be produced in which order?

• A)C, A. B.
• B)A, B, C.
• C)A, C, B.
• D)B, C, A.

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