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Accounting A company has the following production planned for the next four weeks. The figures reflect the full capacity level of operations. Planned output is
Accounting
A company has the following production planned for the next four weeks. The figures reflect the full capacity level of operations. Planned output is equal to the maximum demand per product. Product B D $ $ $ $ per unit per unit per unit per unit 140 40 22 18 Selling price Raw material cost Direct labour cost Variable overhead cost Fixed overhead cost Profit Planned output Direct labour hours per unit 160 24 66 24 16 30 300 6 214 56 88 18 10 42 125 8 100 22 33 24 8 13 240 3 12 48 400 2 CO 00 The direct labour force is threatening to go on strike for two weeks out of the coming four. This means that only 2160 hours will be available for production rather than the usual 4320 hours. If the strike goes ahead, which product or products should be produced if profits are to be maximizedStep by Step Solution
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