Question
Bellring Ltd produces two products: Cordless and standard phone. The selling price of a Cordless phone is $200, and the selling price of a standard
Bellring Ltd produces two products: Cordless and standard phone.The selling price of a Cordless phone is $200, and the selling price of a standard phone is $50. The variable cost per unit for the cordless phoneis $50 and the variable cost per unit of the standard phone is $ 20. The direct labour hour requirement and demand for the two products are:
CordlessStandardMonthly demand400250Direct labour hour required per unit4 hours1.5 hours
Bellring Ltd's production capacity is 2500 direct labourhours. To maximise the profit,Bellring Ltd should produce:
400 units of cordless and 250standardphone
400 units cordless phone only
400units of cordless and333standardphone
None of the above
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