Question
IKS has a production capacity of 5,000 hours that can be used to produce products A or B. The following data is available: Product A
IKS has a production capacity of 5,000 hours that can be used to produce products A or B. The following data is available:
Product A | Product B | |
Unit selling price | 27$ | 30$ |
Unit raw material | 9$ | 7$ |
Unit direct (variable) labour | 5$ | 5$ |
Indirect unit variable manufacturing costs | 3$ | 6.50$ |
Unit fixed manufacturing indirect costs | 7$ | 5$ |
Production time | 2 hours | 0.5 hours |
If the company chooses to manufacture only A, what is the margin on total variable cost of product A taking into account the constraint (5,000 hours)?
Options for Question 12:
50 000 $ | |
No answer is suitable | |
25 000 $ | |
100 000 $ | |
32 500 $ |
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