11 A sunk cost is ABCD A. A cost committed to be spent in the future B. C. A cost which is irrelevant for future business decision A cost that will occur as a result of a decision D. A cost that increase according to the level of activity 12 A company manufactures and sells four products. Details are as follows: Product P Q R S RM RM RM RM Contribution per unit 16.0 14.5 17.6 19.0 Net profit per unit 4.6 4.8 5.2 5.0 Contribution per machine hour 5.0 4.8 4.4 3.8 Net profit per machine hour 1.4 1.6 1.3 1.0 (2 marks) Machine hours available in the next period will not be sufficient to meet production requirements. There are no product-specific fixed costs. What should be the order of priority for production in order to maximise profit? ABCD A. Product S, Product R, Product P, Product Q B. Product Q, Product P, Product R, Product S C. Product R, Product S, Product Q, Product P D. Product P, Product Q, Product R, Product S (2 marks)