Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE HELP Gbenga Ltd makes four different types of products: Alpha, Beta, Charlie and Deita. Process B has been identified by the management as the
PLEASE HELP
Gbenga Ltd makes four different types of products: Alpha, Beta, Charlie and Deita. Process B has been identified by the management as the bottleneck. In Process B, there are only seven machines available for eight hours a day, five days a week and 50 weeks a year. Further information is given below: Alpha 5,000 Charlie Delta Beta 8,000 10,000 30 20 E12 9 E17 E6 ES 54 Estimated annual production units) Selling price per unit Material costs per unit Labour costs and factory overhead cost per unit Machine hours required to complete 10 units in Process f6 2 120 1 8 The management of Gbenga Ltd assume that labour and factory overhead costs are fixed at 152,300 per year. a. Calculate the throughput contribution per unit for the four products. b. Calculate the throughput contribution per bottleneck hour for the four products. c. Calculate the throughput accounting ratio for the four products. d. Based on the results, comment on the number of units of each product Gbenga Ltd should produce next yearStep 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