Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Aish ltd produces four products: namely: A, B, C and D. The following are the firm's budgeted figures for the month of July 2020 A
Aish ltd produces four products: namely: A, B, C and D. The following are the firm's budgeted figures for the month of July 2020 A B C D Demand (units) 1,500 1,800 1,000 4,000 Selling price per unit ( sh) 3,840 2,700 2,000 4,000 Cost per unit (sh) Material 1,200 1,200 800 1,200 Labour 1,500 800 600 1,200 Variable overhead 240 170 100 200 Fixed overhead 600 500 400 600 Additional information: 1. Material cost is Shs 10 per kilogram and the firm has a total of 500 Kilograms 2. Labour is paid at Shs 15 per hour and is limited to 360 hours Required: c) Calculate the production mix that would maximize profit for the month (4 Marks) d) Calculate the increase in profit if an extra 80 production hours are made available (4 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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