60 ABC Celery Corporation manufactures three celerybased pro

60. ABC Celery Corporation manufactures three celery-based products at a time when there is a shortage of celery. Use the information below to determine the best order to use in scheduling production (first to last) to maximize its profit next month. Jelly Cracker Spread Sales Price $40 $32 $22 20 Variable Costs $34 Pounda of Celery Requlired 15 A. Jelly, Cracker Spread, Soup B. Soup, Jelly, Cracker Spread C. Cracker Spread, Jelly, Soup D. Cracker Spread, Soup, Jelly

Solution

Best order to maximise its profit: Particulars Jelly Cracker spread Soup Sales price 40 32 35 Less: Variable cost 34 22 27 Contribution ( Sales price-variable cost) 6 10 8 Pounds of celery 15 20 25 Contribution per pounds of celery (Jelly-6/15, Cracker spread- 10/20, Soup-8/25) 0.40 0.5 0.32 Rank II I III So correct answer is C) Cracker spread,Jelly, Soup