Question

The constraint at Pickrel Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below:VD JT SMSelling price per unit $ 344.85 $ 415.40 $ 119.32Variable cost per unit $ 270.18 $ 310.88 $ 91.96Minutes on the constraint 5.70 6.70 1.901. 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.)Multiple ChoiceJT, SM, VDJT, VD, SMVD, SM, JTSM, VD, JT

Answer 1

Answer:

JT, SM, VD

Explanation:

Calculation to rank the products in the order in which they should be emphasized

VD JT SM

Selling price per unit

$ 344.85 $ 415.40 $ 119.32

Less:Variable cost per unit

$ 270.18 $ 310.88 $ 91.96

Contribution per unit

$74.67 $104.52 $27.36

÷Minutes on the constraint 5.70 6.70 1.90

=Contribution per minut

$13.10 $15.60 $14.40

Ranking

VD $13.10 Third

JT $15.60 First

SM $14.40 Second

JT, SM, VD

Therefore the product will be rank from the highest to the lowest which is JT, SM, VD