Question
A firm offers four different products to its customers. Details (per unit) are set out below: Selling price Variable costs Fixed costs Machine time
A firm offers four different products to its customers. Details (per unit) are set out below: Selling price Variable costs Fixed costs Machine time Economy 40 20 10 3 hours Standard 65 30 .19 5 hours De Luxe 85 45 25 8 hours Super 100 55 25 10 hours The business can make and sell as many of each product as is possible. However, machine availability limits its ability to produce the products. What is the order in which the products should be produced to maximise profits? (5 marks)
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
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