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No. 3: (5.5 marks) A company manufactures three products using the same machine which has limited time available. The following cost and selling price details
No. 3: (5.5 marks) A company manufactures three products using the same machine which has limited time available. The following cost and selling price details relate to the three products: Product Selling price Direct material Direct labour Variable overhead Fixed overhead Profit Machine time Required: A B C S/unit S/unit $/unit 350 310 450 150 70 100 65 50 140 45 60 70 40 50 100 50 80 40 Minutes per unit Minutes per unit Minutes per unit 30 14 24 In order for the company to maximize its profits, rank the order of producing the 3 products as measured using throughput accounting. Show your workings
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