A company makes three products, X, Y and Z, all of which require the use of the
Question:
A company makes three products, X, Y and Z, all of which require the use of the same material. Information about the products is as follows.
The material is in short supply. Which order of priority should the company give to the products to maximise profit?
Transcribed Image Text:
Product X Product Y Product Z $ $ $ Per unit: Selling price 240 Direct material 90 Direct labour 50 40 50 Variable overhead up soi 40 30 36 let Fixed overhead 54 36 36 bow12 Profit 14 20 200 260 than the futuro 96 80 27
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First lets calculate the contribution margin per unit for each product Contribut...View the full answer
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