BHJ Ltd produces a single product X, which passes through three different processes, A, B and C. The throughput per hour of the three processes is 16, 8 and 16 units of X respectively. The company works an 8 hour day, 5 days a week, 45 weeks a year. The selling price of X is 140 per unit and its material cost is 35 per unit. Conversion costs are planned to be 23,000 per week.

You are required to:

1. Determine the throughput accounting (TA) ratio per day. (4 marks)

ii. Calculate how much the company could spend on equipment to improve the throughput of process B if it wished to recover its costs in the following time periods.