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A company manufactures three products using different amounts of the same material, which is in short supply. The following budgeted data relates to theproducts: Per
A company manufactures three products using different amounts of the same material, which is in short supply. The following budgeted data relates to theproducts:
Per unit:P1P2P3
$$$
Selling price9611276
Materials ($2 per kg)(32)(26)(18)
Labour ($10 per hour(8)(16)(9)
Variable overheads(16)(22)(19)
Fixed overheads(5)(16)(10)
Profit per unit353221
What order should the products be manufactured in to ensure that profit is maximised?
A)P3, P1, P2
B)P2, P3 , P1
C)P2, P1, P3
D)P1, P2, P3
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