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a)calculate the breakeven point of units for each product b)assuming, materials is a limiting factor in the period, advise management on the most appropriate mix
a)calculate the breakeven point of units for each product b)assuming, materials is a limiting factor in the period, advise management on the most appropriate mix c)assuming labour is a limiting factor in the period, advise management on the most appropriate mix d)which product should the company office concentrate more of its materials and labour on and why? e)compute the total contribution the company would earn from the production mix determined in (b) above
UUU Question 1 cts (giving a Explain the term "limiting factor" in a production strategy and give four (4) examples. b. GRASAG Ltd produces four (4) different types of kitchen cabinets. The Production red in thei Manager is preparing its production mix for the year and has presented the following Type of Cabinet: s faith 10 Selling Price/Unit (GHC) 420 360 300 240 Material Price/kg GHC10 Labour Hour Rate GHC5/hour Materials (kg) 8 10 12 Labour Hours 8 10 6 4 Maximum Demand (units) 15,000 12,000 20.000 20,000 Assume that: Fixed Cost per annum is GHC280,000, materials are limited to 596,000 kgs; and labour Hours are limited to 480,000 Hours ndStep by Step Solution
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