Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable market demand exists for all models. The following per unit

Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable market demand exists for all models. The following per unit data apply:

Model A Model B Model C
Selling price $844 $871 $869
Direct materials $66 $63 $79
Direct labour ($80 per hour) 1.2 hours 1.7 hours 1.3 hours
Variable support costs $146 $187 $182
Machine-hours per unit 2 hours 0.8 hours 2.5 hours

Calculate the highest operating income (rounded using two decimals) the company could achieve using the short-run profit maximising strategy if the maximum machine-hours available are 4,043 per month. Total fixed costs per month are $950,000.

corect answer is 1,501,068.75 0.1. how did they get this?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions