Question
Diamond Industries manufactures four products. The following information is available for each product: Product A Product B Product C Product D Selling price $20 $26
- Diamond Industries manufactures four products. The following information is available for each product:
|
| Product A | Product B | Product C | Product D |
| Selling price | $20 | $26 | $28 | $15 |
| Variable costs | $12 | $10 | $14 | $5 |
| # of machine hours | 4 | 5 | 4 | 3.5 |
Diamond Industries sales are limited by the number of machine-hours it has available.
Required:
Provide management with a ranking of the order in which the products should be produced to maximize profit given its limited machine capacity. Show all calculations for full marks.
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Accounting Theory Contemporary Accounting Issues
Authors: Thomas G. Evans
1st Edition
0324107846, 9780324107845
