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Sienna Company produces earrings, bracelets, and necklaces that are in high demand. Following is ...

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Sienna Company produces earrings, bracelets, and necklaces that are in high demand. Following is ...

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

Earrings

Bracelets

Necklaces

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 item	0.5	1	1.2

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

Edition: 4^th

Author: Davis

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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