Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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 phone is $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:

Cordless Standard
Monthly demand 400 250
Direct labour hour required per unit 4 hours 1.5 hours

Bellring Ltd's production capacity is 2500 direct labour hours. To maximise the profit, Bellring Ltd should produce:

400 units of cordless and 250 standard phone

400 units cordless phone only

400 units of cordless and 333 standard phone

None of the above

Which is the correct option?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

978-1259307416

Students also viewed these Accounting questions