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TOPIC IS RELEVANT COSTING UNDER PRODUCT COMBINATION

THE PROBLEM:

Provide Explanation. Boom Co. produces three products. One machine is used to produce the products. The contribution margins, sales demand and time on the machine (in hours) are as follows: Market Limit Unit CM Hours on Machine 1,000 units P 20 20 per unit 800 units P 18 20 per unit 1,000 units P 25 20 per unit There are 9,000 hours available on the machine during the week. Total fixed cost at P10,000. What is the best product combination