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Please show work and not just the solution! Thanks Q10. Zebra Ltd has three products all of which require the same production facilities. Financial data
Please show work and not just the solution! Thanks
Q10. Zebra Ltd has three products all of which require the same production facilities. Financial data on the three products are as follows: Y Z Product per unit per unit per unit Selling price per unit () 190 132 95 Variable Cost per unit (): Direct material per unit (E) 40 35 22 Direct Labour per unit () 30 15 8 Other variable cost per unit (E) 10 10 5 Share of fixed cost per unit (E) 30 30 30 Monthly demand in units (units) 120 180 200 Machine time per unit (hours) 11 6 4 The same machine is used to produce all three products and hence, fixed cost is not affected. Fixed cost is 14,300 per month for all production Machine time is limited to 2,320 hours per month. Labour'is a variable cost for this project Required: With supported workings, show which combination of products to be produced to achieve the highest profit for the company. Clearly show your workings which shows the no of units to be produced, total contribution and total profit. (Total: 10 marks) Step by Step Solution
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