Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hendry Ltd makes two products, the Kettle and the Pot. Unit variable costs are as follows. The sales price per unit is 55 per Kettle
Hendry Ltd makes two products, the Kettle and the Pot. Unit variable costs are as follows. The sales price per unit is 55 per Kettle and 32 per Pot. During June the available direct labour is limited to 10,000 hours. Sales demand in June is expected to be as follows. Kettle Pot 3,000 units 4,000 units Required: a) Calculate the shortfall in labour hours for the month of June. b) Determine the production budget for June that will maximize profit. c) Calculate the total profit for the production budget for June calculated in part (b), assuming that fixed costs per month are 50,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started