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Nikolas Nikolas
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A year ago
Sienna Company produces earrings, bracelets, and necklaces that are in high demand. Following is information for each of these products:

EarringsBraceletsNecklaces
Selling price per item$16.75$18.50$25.60
Variable cost per item  14.00  13.50  19.20
Contribution margin per item$  2.75$  5.00$  6.40
Machine hours per item0.511.2

Sienna has 2,000 machine hours available each month. Demand for each item exceeds Sienna's capacity to produce the item. In order to maximize the company's total contribution margin, in what sequence should Sienna fill orders for the three products?

▸ Necklaces first, then earrings, then bracelets

▸ Bracelets first, then earrings, then necklaces

▸ Necklaces first, then bracelets, then earrings

▸ Earrings first, then necklaces, then bracelets
Textbook 
Managerial Accounting

Managerial Accounting


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yolinessyoliness
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A year ago
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