Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company manufactures two products, A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only

A company manufactures two products, A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only variable costs. Product details are as follows:

A B

Selling price 24 30

Material costs 5 10

Skilled labour costs 16 16

Materials cost 5 per kg. Skilled labour costs 8 per hour. For the month of May 2020 maximum expected demand is for 1,000 units of A and 1,500 units of B. In May 2020 there is expected to be a restriction on the availability of both material and skilled labour. There are 4,500 kgs. of Material available and 4,500 hours of skilled labour.

To maximise expected contribution how much A and B should be produced?

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

Nmap Network Exploration And Security Auditing Cookbook

Authors: Paulino Calderon

2nd Revised Edition

1786467453, 978-1786467454

More Books

Students also viewed these Accounting questions

Question

Required: Prepare a classified balance sheet

Answered: 1 week ago

Question

Describe the new structures for the HRM function. page 676

Answered: 1 week ago