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fits falling and aliswel the question ILLUSTRATION 1: X Ltd makes three products, A, B and C, of which unit costs, machine hours and selling

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fits falling and aliswel the question ILLUSTRATION 1: X Ltd makes three products, A, B and C, of which unit costs, machine hours and selling prices are as follows: 541. .. Product A Product B Product C Machine hours 10 12 14 Direct materials @ $0.5 per kg 14 kg 12 kg 10 kg Direct wages @ $7.50 per hour 1.2 hours 0.8 hours 0.4 hours Variable overheads ($/unit) CN i co Selling price ($/unit) 25 20 15 Sales demand for the period is limited as follows. Product A 4,000 Product B 6,000 Product C 6,000 Company policy is to produce a minimum of 1,000 units of Product A. The supply of materials in the period is unlimited, but machine hours are limited to 200,000 and direct labor hours to 5,000. Required: Indicate the production levels that should be adopted for the three products in order to maximize contribution, and state the maximum contribution. AURIAN, VICENT

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