Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AB Ltd makes two products, the Zee and the Xee. Unit variable costs are as follows. Zee RM Direct Materials Direct Labour (RM 12
AB Ltd makes two products, the Zee and the Xee. Unit variable costs are as follows. Zee RM Direct Materials Direct Labour (RM 12 per hour) Variable Overhead Total variable cost The sales price per unit is RM 56 per Zee and RM 44 per Xee. During July 2022 the available direct labour is limited to 32,000 hours, Sales demand in July is expected to be 12,000 units for Zee and 20,000 units for Xee. 4 24 4 Xee RM 32 12 12 4 28 Required: Determine the profit - maximizing production mix, assuming that monthly fixed costs are RM 80,000; and that opening stocks of finished goods and work in progress are nil.
Step by Step Solution
★★★★★
3.27 Rating (150 Votes )
There are 3 Steps involved in it
Step: 1
To determine the profitmaximizing production mix for Zee and Xee we need to calculate the contribution margin for each product and then optimize the p...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started