JJ Ltd manufactures three products: W, X and Y.

The products use a series of different machines but there is a common machine that is a bottleneck.

The standard selling price and standard cost per unit for each product for the forthcoming period are as follows:

40 per cent of the overhead cost is classified as variable.
Using a throughput accounting approach, what would be the ranking of the products for best use of the bottleneck?

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MW X4 Y Selling price 200 150 150 Cost Direct material 41 Labour 30 20 Overheads 60 40 Profit 69 222 20 30 36 50 70 34 Bottleneck machine - minutes per unit 6 10 7