Globeco makes four geographical board quiz games: France, Germany, UK and US. Globeco has the following recent results.

For next year, there are only 1,500 direct labour hours available. Last year there were 2,375 direct labour hours. Direct labour is paid at £10 per hour. The maximum revenue (in units) is predicted to be 2,000 France, 3,500 Germany, 6,000 UK and 8,000 US.

Required:

Calculate the most profi table production schedule, given that direct labour hours, the limiting factor, are restricted to 3,000 hours.

Transcribed Image Text:

France Germany UK US Units sold 1,000 1,500 4,000 6,000 Revenue 2,000 3,000 12,000 24,000 Less: Variable Costs Direct labour 800 1,350 6,000 15,600 Direct materials 200 300 1,300 1,400 Variable 80 135 600 1,560 overheads Fixed overheads 1,000 1,000 1,000 1,000 (equal allocation) 2,080 2,785 8,900 19,560 Net Profit (loss) (80) 215 3,100 4,440