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

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.

Correct Answer:

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