Emcee pic manufactures three products, standard data for which are given below:

(a) Present one graph that shows the profit of the company as a whole and the contribution earned by each of the three products.

(b) Advise management which product should be produced and state the total contribution for the period, if total hours in Department 2 are limited to 9,000 but there is no such limitation in Department 1. Furthermore, there is a requirement to produce 50 per cent of each product.

Transcribed Image Text:

Direct materials Direct wages: 70 Department 1 at 3 per hour Department 2 at 4 per hour Variable overhead: 15 20 22 ALD 50 Per unit B C 124 70 24 18 12 16 Department 1 at 2 per hour Department 2 at 1 per hour 10 16 12 5 4 4 Fixed overhead 35 30 20 155 210 140 Profit 45 30 40 200 240 180 Budgeted sales for the period (units) You are required to: 1,200 800 900