Pasture Corporation Processes All of Its Products Through a Lathe

question 159

Multiple Choice

Pasture Corporation processes all of its products through a lathe machine.The lathe is only available for 60 hours per week and is the constraint for all of the products.Data regarding Pasture Corporation's three products follows: $$\begin{array} { | l | c | c | c | } \hline & \text { Product D } & \text { Product E } & \text { Product F } \\\hline \text { Selling price per unit } & \$ 80.00 & \$ 60.00 & \$ 100.00 \\\hline \text { Variable cost per unit } & \$ 45.00 & \$ 35.00 & \$ 80.00 \\\hline \begin{array} { c } \text { Minutes of lathe time } \\\text { required per unit }\end{array} & 10 & 20 & 5 \\\hline\end{array}$$ In what order should Pasture Corporation emphasize its products to maximize its contribution margin? (Rank the products in order from most profitable to least profitable.)

• A)Product F,Product E,Product D
• B)Product E,Product D,Product F
• C)Product D,Product E,Product F
• D)Product F,Product D,Product E

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Definitions:

Defense Mechanisms

Strategies used to keep unconscious thoughts from the conscious mind.

Psychological Processes

Activities of the mind that involve receiving, processing, storing, and retrieving information.

Consciously Experiencing

The process of being aware of and directly perceiving events, emotions, and thoughts in the present moment.

Denial

Not acknowledging unconscious content.