Question
A company has the following data relating to two products that require skilled labour. Currently there is a shortage of labour and has to
A company has the following data relating to two products that require skilled labour. Currently there is a shortage of labour and has to prioritise one product to maximise profit until more labour can be found. They are currently limited to 1000 Direct Labour Hours (DLH). Sell Price (per metre) Variable production costs per metre Contribution margin (SP-VC) Labour hours(DLH) to produce: Weekly Demand (if all orders could be fulfilled in metres) Product A $200.00 $85.00 $115.00 0.25 2500 Answer: Product B $225.00 $95.00 $130.00 0.28 1900 Required enter the number of the LEAST (2nd) product prioritised and indicate which product by entering the letter A or B after the number e.g. If you wish to make Product A first and you can only make up to 50 of product B then type 500 B
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
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