413. Yome Ltd manufacturers a number of specialised electronic components, including the advanced Pro Vmax. Yome Ltd has the capacity to produce 10,000 units of Pro Vmax per year. Currently it is operating at 90 per cent capacity. The selling price for Pro Vmax is $250 per unit. The variable cost per unit is $50. Fixed cost allocated to producing Pro Vmax is $450,000 per year. Yome Ltd receives a special order for 2,000 units of Pro Vmax. The opportunity cost associated with taking this special order is:

A.

$200,000

B.

$500,000

C.

$0

D.

$400,000

415.

K & C plans to sell 1,500 units. The selling price per unit is $24. There are 500 units in beginning inventory and the company would like to have 150 units in ending inventory. How many units should be produced for the coming period?

A.

1150

B.

2150

C.

1500

D.

1850

418.

The managing director of Winz Limited is setting the production plan for the next financial year. Winz has a shortage of machine labour and wishes to maximise the profitability of the company. Winz manufactures three products A, B and C. There is 150,000 hours of machining available in the year at a cost of $10 per hour. The following information relates to each product.

	A				B				C
Selling price per unit		$	30		$	54		$	66
Materials cost per unit		$	16		$	18		$	34
Machine hours per unit			2			3			4
Maximum demand			30 000			30 000			40 000

Assuming all relevant information is provided, in what order should Winz manufacture its products to maximise profit in the current year?

A.

B then C

B.

None of the given answers

C.

B, C then A

D.

A, C then B