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A company is able to produce four products in its planning production moix for the next period. Estimated cost, sales and production data are given
A company is able to produce four products in its planning production moix for the next period. Estimated cost, sales and production data are given below, per unit of each product: Fixed overheads cost to be incurred for the period amounts to GHC 1,700,000. Required: (i) Calculate total contribution for all products assuming all units of each product could be sold and there is no constraint on production. (ii) Calculate the most appropriate mix under the assumptions that labour hours are limited to 82,700 hours. (iii) Calculate total profit or loss from the production mix determined in requirement (ii) above. (iv) What qualitative factors are likely to influence your decision? [12 Mark:]
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