An automated turning machine is the current constraint at Naik Corporation. Thre

Question

An automated turning machine is the current constraint at Naik Corporation. Three products use this constrained resource. Data concerning those products appear below: KU OP YY Selling price per unit.................... $104.89 $528.09 $558.03 Variable cost per unit.................. $82.11 $429.78 $420.08 Minutes on the constraint............ 1.70 8.70 8.90 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized

Explanation / Answer

product KU product OP product YY Selling price per unit $104.89 $528.09 $558.03 Variable cost per unit 82.11 429.78 420.08 Contribution per unit 22.78 98.31 137.95 Minutes on th constraint 1.70 8.70 8.90 Contribution per Minute $13.40 $11.30 $15.50 RANKING AS PER PROFITABILITY SECOND(LESS PROFITABLE) THIRD (LEAST PROFITABLE) FIRST (MOST PROFITABLE)

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