Suzy Co Produces and Sells Three Products (X, Y, and Z)

question 12

Multiple Choice

Suzy Co. produces and sells three products (X, Y, and Z) . The following data relate to the three products: $\begin{array}{lrrrrr}&X&Y&Z\\\text { Demand in units } & 160 & 150 & 140 \\\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \\\text { Raw materials costs per unit } & \$ 65 & \$ 80 & \$ 90 \\\text { Labor time in minutes per unit } & 10 & 20 & 10\end{array}$ Which is the most profitable product if there is a constraint on labor time, so that total demand for all products cannot be met?

• A) Product X.
• B) Product Y.
• C) Product Z.
• D) More than one of the products has equal total throughput margin per labor minute.
• E) There isn't enough information to answer the question.

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Definitions:

Mass Service

A type of service operation characterized by serving a large number of customers with standardized services, often with little to no customization.

Service Factory

A business model that combines production and service provision, focusing on delivering manufactured goods along with value-added services.

Tight Quality Control

Rigorous and stringent monitoring and verification of products or services to meet specified quality standards.

Information Technology

The study or use of systems (computers and telecommunications) for storing, retrieving, and sending information, playing a critical role in modern organizations.