Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

83. Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component Z. The selling price of Component

83.Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component Z. The selling price of Component Y is $15, and the selling price of Component Z is $20. The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11. The machine hour requirement and demand for the two products are:

component y component z

monthly demand 1000 2500

machine hours required per unit 2 hours 3 hours

Avocado Ltd's production capacity is 6500 machine hours per month. The optimal product mix is:

A.1000 units X, 1500 units Y.(why this option)

B.0 units X, 2167 units Y.

C.1000 units X, 2500 units Y.

D.1500 units X, 1000 units Y.

Step by Step Solution

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

Step: 3

blur-text-image

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

Understanding Financial Accounting

Authors: Christopher D. Burnley

2nd Canadian Edition

1119406927, 978-1119406921

More Books

Students also viewed these Accounting questions