The constraint at Artis Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below:
-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.
A) CT,LN,SI
B) SI,CT,LN
C) CT,SI,LN
D) LN,SI,CT

Question

The constraint at Artis Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: 
-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.
A) CT,LN,SI 
B) SI,CT,LN 
C) CT,SI,LN 
D) LN,SI,CT

Quizplus · Accepted Answer

The constraint is time on a particular machine, so the products should be ranked based on their contribution margin per unit of time on the machine. CT has the highest contribution margin per unit of time on the machine ($80 per hour), followed by LN ($60 per hour) and then SI ($40 per hour). Therefore, the products should be emphasized in the order of CT, LN, and SI, which is option A.

The Constraint at Artis Corporation Is Time on a Particular