Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 (14 Marks) Classic Decorations makes three decorative copper products: pot racks, ice buckets, and candlesticks. These products are made by robots, which

image text in transcribed

Question 3 (14 Marks) Classic Decorations makes three decorative copper products: pot racks, ice buckets, and candlesticks. These products are made by robots, which are programmed to form the desired product. It takes one robot hour to make each pot rack, one-half hour to make each ice bucket, and one-fourth hour to make each candlestick. The company has 43,200 robot hours per year available for production. Analysis reveals the following expected revenue and costs per unit: Pot Racks Ice Buckets Candlesticks Selling price $110 $80 $40 Variable costs: Direct materials $ 22 $16 $ 9 Direct labour 7 10 5 Variable overhead Variable selling 22 22 12 6 3 16 8 Fixed costs: Factory 10 15 7 Required: a. If the company can sell an unlimited amount of any of the products, how many of each product. should it make? (5 marks) b. How many units of each product must the company make if it has a policy of devoting no more than 60% of its available robot capacity to any one product and at least 10% to every product? (9 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

9th edition

290-1259222138, 1259222136, 978-1259222139

More Books

Students also viewed these Accounting questions