Question
( B ) : In each quarter of every year, the maximum capacity of the MBA Co. is 4000 hours available for sorting and re-packing
( B ) : In each quarter of every year, the maximum capacity of the "MBA
Co." is 4000 hours available for sorting and re-packing two sorts of imported apples in special boxes where each box contains only one ton of either the red or the yellow apples. The monthly common committed fixed costs of the company is L.E. 100000, and the following estimates are presented in relation to the coming quarter which will start July 1, 2015 :-
| red | Yellow |
Maximum demand in the local market. | 150 boxes | 300 boxes |
Selling price per box. | L.E 12000 | L.E 10000 |
Sorting and re-packing time required per box. | 20 Hours | 10 Hours |
Contribution margin per hour of sorting and re-packing |
L.E. 300 |
L.E 400 |
eqrequired :
Use appropriate traditional managerial accounting marginal analysis techniques to determine the optimal imports mix the company should consider for the third quarter of 2015, then prepare this quarter's expected detailed income statement.
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