ABC Itd company produces three products and is reviewing the production and sales budgets for the...
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ABC Itd company produces three products and is reviewing the production and sales budgets for the next accounting period. The following information is available for the three products: Selling price Labour (£20 per hour) Other variable costs Contribution/unit Maximum demand Required: i. ii. Product P 600 180 £ Product Q £ 1,200 320 (780) 136 420 200 600 (456) 144 600 Product R £ 80 28 Labour hours are strictly limited to 10,800 hours in total. Calculate the optimum product mix and the maximum contribution. £ 200 (108) 92 1,000 A special contract requires 3,500 labour hours. What is the relevant cost of obtaining these hours? ABC Itd company produces three products and is reviewing the production and sales budgets for the next accounting period. The following information is available for the three products: Selling price Labour (£20 per hour) Other variable costs Contribution/unit Maximum demand Required: i. ii. Product P 600 180 £ Product Q £ 1,200 320 (780) 136 420 200 600 (456) 144 600 Product R £ 80 28 Labour hours are strictly limited to 10,800 hours in total. Calculate the optimum product mix and the maximum contribution. £ 200 (108) 92 1,000 A special contract requires 3,500 labour hours. What is the relevant cost of obtaining these hours?
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Related Book For
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date:
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