Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AB Company makes two products, A and B. Fixed costs per month are $5,000. Selling prices and variable costs per unit are: A B Unit

image text in transcribed

AB Company makes two products, A and B. Fixed costs per month are $5,000. Selling prices and variable costs per unit are: A B Unit selling price $20 $30 Unit variable cost $12 $14 A machine is used to manufacture A and B and has 150 hours available capacity per month. Product Atakes 20 minutes of machine time per unit while Product Brequires 30 minutes of machine time per unit. In addition to the machine time used, skilled labour is in short supply, there being only 200 hours per month available. Both products require 72 hour of skilled labour. Taking account of both the machine and skilled labour constraints, what is the optimum production schedule? a. 300 of B b. 450 of A or 400 of B C. 400 of A d. 300 of A and 100 of B

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting Tools For Business Decision Making

Authors: Weygandt, Kimmel, Kieso

4th Edition

0470478535, 978-0470478530

More Books

Students also viewed these Accounting questions

Question

iaker tition 3+134: iaker tition 3+134

Answered: 1 week ago