Dunford Company produces three products with the following costs and selling prices:
| Product X | Product Y | Product Z | |
| Selling price per unit | $40 | $30 | $35 |
| Variable costs per unit | 24 | 16 | 20 |
| Contribution margin per unit | $16 | $14 | $15 |
| Direct labor hours per unit | 4 | 2 | 3 |
| Machine hours per unit | 5 | 7 | 4 |
If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order?
a. Y, Z, X
b. X, Y, Z
c. X, Z, Y
d. Z, X, Y
The night before an economics test, you decide to go to the movies instead of staying home and working your assignment. You get 50 percent on your test compared with the 70 percent that you normally score.
a. Did you face a tradeoff?
b. What was the opportunity cost of your evening at the movies?
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