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6) Bata Shoe company has 4,000 machine hours available to it to produce either product # 22 or product # 44. The following information refers
6) Bata Shoe company has 4,000 machine hours available to it to produce either product # 22 or product # 44. The following information refers to each product. Product # 22 Product # 44 Selling Price Direct Materials Direct Labour Variable Manufacturing Overheads Fixed Manufacturing Overheads Machine Time Required $ 27 $6 $3 $4 $3 20 minutes $50 $ 8 $2 $ 5 $ 5 10 minutes Management want to know which product to produce in order to maximize it net income. Required: a) Prepare a report to advise management as to which product should be produced. 10 Marks
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