Banfield Corporation makes three products that use compound W, the current const

Question

Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: Selling Price Per Unit, VP(248.04) YI (230.66) WX (505.44) Variable Cost Per Unit, VP (190.71) YI (172.14) WX (388.80) Centiliters pf Compound W, VP(3.90) YI (3.80) WX (8.10)

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. (Points : 2) WX, VP, YI YI, VP, WX WX, YI, VP VP, WX, YI

Explanation / Answer

Banfield Corporation Product details VP YI WX Unit Selling price             248.04             230.66           505.44 Unit Variable cost             190.71             172.14           388.80 Unit Contribution Margin               57.33                58.52           116.64 Centilitres of Compound W per unit                 3.90                  3.80                8.10 Contribution Margin per Centilitre of W=               14.70                15.40             14.40 Ranking Most profitable to least profitable II I III So Rank is YI, VP, WX

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.