Fahringer Corporation makes three products that use compound W, the current cons

Question

Fahringer Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below BJ QR Selling price per unit Variable cost per unit S10479 $52799 $55793 S 81.89 $42956$419.86 11.50 2.00 1170 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. (Round your intermediate calculations to 2 decimal places) XS.BJOR O QR BJ.XS BJQRXS O Type here to search F10 9

Explanation / Answer

so option (2) QR , BJ , XS is correct.

BJ XS QR selling price per unit 104.79 527.99 557.93 Variable cost per unit 81.89 429.56 419.86 contribution per unit (SP- VC) (a) 22.90 98.43 138.07 compound W (b) 2 11.5 11.70 contribution per unit of constrained resource (a / b) 11.45 8.56 11.80 Ranking 2 3 1

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