Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cannon Inc manufactures four types of security cameras; Doorbell, High Def, infrared and Corner Mounted and all these products are manufactured in a semi-automated system.

Cannon Inc manufactures four types of security cameras; Doorbell, High Def, infrared and Corner Mounted and all these products are manufactured in a semi-automated system. However, due to the Covid 19 pandemic and import restrictions, materials:- metal 1 availability is 8,000 Kg and Metal 2 is 16,500 kg. Assume that alternative metal is also not available in short term, thus, the company is seeking to limit the manufacturing of cameras which contribute less to its profitability. Production requirements and sales details relating to Products are shown below: Door Bell High Def Infrared Corner Mounted (basic model) Selling price per unit $ 550 $780 $850 $420 Direct material, Metal 1 @$68 per Kg 2 3 4 1 Direct material, Metal 2 @$46 per Kg 2 4 5 3 Direct labour@ $55 per Direct Labour Hour 2 3 4 3 Variable overhead @ $14 per Direct Labour Fixed overhead Allocated at $8.00 per Direct Labour Hr. Sales demand units (annual) 1,250 1,120 925 1,400 Other Operating Cost $ 245,790 and selling and admin cost total $ 272,990 Required. Compute the optimal production for Cannon Limited. Compute the total profit expected from the optimal production

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions