Question
Scotts's Scooters Ltd. manufactures three different products, Models A, B, and C. The following per-unit data apply: A B C Selling price $110 $90 $50
Scotts's Scooters Ltd. manufactures three different products, Models A, B, and C. The following per-unit data apply:
| A | B | C | |
|---|---|---|---|
| Selling price | $110 | $90 | $50 |
| Direct materials | 70 | 40 | 20 |
| Direct labour ($40/hour) | 20 | 20 | 10 |
| Variable mfg. costs ($60 per machine hour) | 6 | 10 | 4 |
| Fixed manufacturing costs |
A. If there is excess machine capacity, additional units of which model(s) should be produced first to maximize profit?
B. If there are a limited number of direct labour hours available and demand exceeds the total direct labour hours available, in what order should the models be produced to maximize total contribution margin?
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Family Child Care Audit Manual Strategies For Protecting Your Business In An IRS Audit RedLeaf Business Series
Authors: Tom Copeland
1st Edition
1929610211, 978-1929610211
