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Please solve it in 30 minute i will upvote you i need help It has three types of jeans all of which require the same
Please solve it in 30 minute i will upvote you i need help
It has three types of jeans all of which require the same production facilities. Estimates for the next month have been made as follows: Product X Y Z Selling price per unit () 200 150 120 Variable Material Cost per unit 55 47 30 () Variable Labour Cost per unit () 49 40 36 The share of Fixed overhead 6 6 6 per unit () Machine time per unit (hours) 12 hrs 9 hrs 6 hrs Monthly market demand in 2,000 1,000 500 units (units) 07 The same machine is used to produce all three products and hence, fixed cost is not affected. The business has a machine time capacity of 24,000 hours per month. Total fixed cost per month is 75,000. 55 47 SU (9) Variable Labour Cost per unit () 49 40 36 6 6 6 The share of Fixed overhead per unit () Machine time per unit (hours) Monthly market demand in units (units) 12 hrs 9 hrs 6 hrs 2,000 1,000 500 The same machine is used to produce all three products and hence, fixed cost is not affected. The business has a machine time capacity of 24,000 hours per month. Total fixed cost per month is 75,000. Required: A) With supported workings, show which combination of products to be produced to achieve the highest profit for the company. Clearly show your workings which show the no of units to be produced, total contribution and total profit/(loss)_( 30 marks)Step by Step Solution
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