=+ (c) The optimal solution to the Caradoc Company's problem is for it to produce 45 units

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(c) The optimal solution to the Caradoc Company's problem is for it to produce 45 units of product BI and 15 units of B2. The limiting constraints prove to be the utilization of machines Land Y, wh ich are given the following shadow prices:

Machine L Machine Y fO.375 per hr f1.000 per hr Derive appropriate transfer prices for the intermediate products Al, A2 and A3, and calculate the profit that would be made by each division.

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Accounting For Management Control

ISBN: 9780412374807

2nd Edition

Authors: David Otley And Kenneth Merchant Clive Emmanuel

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