Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Modern Home Sdn . Bhd . manufactures four types of multi - purpose storage cabinets: Modern, Antique, Trendy and Smart. The selling price and the
Modern Home Sdn Bhd manufactures four types of multipurpose storage cabinets: Modern, Antique, Trendy and Smart. The selling price and the marginal cost of each product are as follows
Modern Antique Trendy Smart
RM RM RM RM
Selling Price
Marginal cost
The companys fixed costs are RM per annum. There is a shortage of a raw material called Glossy Melamine which is used in all four products. Modern uses ml of Glossy Melamine, Antique ml Trendy ml and Smart ml Only ml of Glossy Melamine will be available for the year. In addition, market constraints are expected to restrict the production and sales of each product to:
Modern: units, Antique: units, Trendy: units and Smart: units.
Required:
a Identify which product s the company should concentrate on Show all workings.
marks
b Calculate the numbers of each type of cabinets to be produced and sold to maximize profit of Modern Home Sdn Bhd
marks
c Prepare a marginal cost statement showing the profit of Modern Home Sdn Bhd for the year.
marks
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