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A company is producing three products A, B and C. The following information is available related to the three products. Direct Material Direct Labour
A company is producing three products A, B and C. The following information is available related to the three products. Direct Material Direct Labour @RO 2 per Hour Variable Overheads Selling Price Estimated demand (in Units) (per Unit in RO) Product Product A A5 5 8 2 20 200 B 3 4 2 12 400 Product C 4 6 2 18 300 The availability of labour hours is limited to 2000 Hrs. Determine the optimum product mix for the company.
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To determine the optimum product mix for the company we need to consider the contribution margin per unit for each product The contribution margin is ...
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
