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Texas A&M University-Commerce Operations And Supply Chain Management Assignment Help - Oregon Company


Question - Oregon Company produces three products, X, Y, and Z. Data concerning the three products are as
follows:
X Y Z
Selling price $80.00 $56.00 $70.00
Variable expenses:
Direct materials 24.00 15.00 9.00
Direct labor 14.00 13.00 15.00
Other variable expenses 10.00 14.00 25.00
Contribution margin $32.00 $14.00 $14.00
Demand for the company’s products is very strong, with far more order each month than the company
can produce with the available raw materials. The same material is used in each product. The
material cost $3 per pound, with a maximum of 5,000 pounds available each month.
Required: In which order should the company produce X, Y and Z?

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