Answer:
Option D
Wales
Step-by-step explanation:
Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with the highest contribution per unit of the scare resource
The contribution per unit = selling price - unit variable cost
Bales- 55- 20= 35 per unit
Tales- 78- 50 = 28 per unit
Wales - 32- 15 = 17 per unit
Contribution per hour = contribution per unit/machine hour required
Product Cont/unit machine hr /unit cont/hr Ranking
Bales 35 5 7 2nd
Tales 28 7 4 3rd
Wales 17 1 17 1st
Note that the contribution per machine is arrived as contribution per unit divided machine hours required per product.