Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Bella Corporation is a small company making two products with the following financial details: Bella simple Bella deluxe Selling price Variable costs The

image

1. Bella Corporation is a small company making two products with the following financial details: Bella simple Bella deluxe Selling price Variable costs The weekly fixed costs are 3,000 The use of resources by each product is: a) 16 Material 45 Material 96 Machine time Labour time b) 6 Bella simple 0.4 kg 2 kg 4 minutes 15 minutes 24 16 Bella deluxe 1.1kg 1.5kg The materials are difficult to obtain and are made by only one supplier. There will be a delay in delivery of the ingredients for the next week so Bella Corporation will use the ingredients in inventory of: Material No.45-500 kg 3 minutes 25 minutes Material No.96- 1,000 kg The weekly machine capacity is 40 hours. The weekly labour time is 200 hours. Five employees are paid for a 40 hour week even if there is not enough work to fill 40 hours. The corporation can sell all of its production. Required: Using a graphical approach calculate the most profitable production quantities for the week, given the constrained resources and calculate the net income which will be made. (12 marks) In this particular week the only resource which could be increased is labour. The company could obtain more labour time by paying overtime of 10 per hour. Calculate how many hours should be paid for and calculate whether this action would improve net income, considering the other constraints which exist. (8 marks)

Step by Step Solution

3.34 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Methods For Business

Authors: Donald Waters

5th Edition

273739476, 978-0273739470

More Books

Students also viewed these Accounting questions

Question

Subtract the polynomials. (-x+x-5) - (x-x + 5)

Answered: 1 week ago