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29 October, 15:48

Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below:

VP YI WX

Selling price per unit

$248.04 $230.66 $505.44

Variable cost per unit

$190.71 $172.14 $388.80

Centiliters of compound W 3.90 3.80 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.

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  1. 29 October, 16:01
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    The products rank are shown below:

    VP YI WX

    Selling price per unit (A) $248.04 $230.66 $505.44

    Variable cost per unit (B) $190.71 $172.14 $388.80

    Contribution margin

    per unit (A-B) or C $57.33 $58.52 $116.64

    Centiliters of compound W (D) 3.90 3.80 8.10

    Contribution per centiliters (C:D) 14.7 15.4 14.4

    Rank 2 1 3
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