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Company 10 makes three products: A, B, C. It has different costs for them. For product A: Selling price is 60, Direct materials 16, Direct
Company 10 makes three products: A, B, C. It has different costs for them. For product A: Selling price is 60, Direct materials 16, Direct labour is 12, Variable overheads are 2 and fixed overheads are 11. For product B: Selling price is 50, Direct materials 12, Direct labour is 8, Variable overheads are 5 and fixed overheads are 10. For product C: Selling price is 70, Direct materials 18, Direct labour is 4, Variable overheads are 10 and fixed overheads are 15. The company uses direct materials which cost 4 per one meter. Company has limited amount of material and no opportunity to buy more. In what order should company produce each product in order to maximize its profit? AA, B, C BB,C,A , , DC, B, A
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