Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Serra Industries is a fine food company producing burgers and sausages. It has 300 staff who work 8 hours a day, 5 days a week

Serra Industries is a fine food company producing burgers and sausages. It has 300 staff who work 8 hours a day, 5 days a week for 50 weeks. The demand for burgers and sausages does not exceed 50,000 and 150,000 kilos annually. Fixed factory overheads are applied on the basis of direct labor hours @$1 per hour.

burgers

sausages

$

$

Sales

10

15

Variable costs

5

6

Contribution margin

5

9

Fixed costs

2

4

Profit

3

5

What is the maximum profit and most profitable mix of products?

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

Excise Tax Ozone Depleting Chemicals IRS Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304114279, 978-1304114273

More Books

Students also viewed these Accounting questions

Question

Consider this article:...

Answered: 1 week ago

Question

1. Organize and support your main points

Answered: 1 week ago

Question

3. Move smoothly from point to point

Answered: 1 week ago

Question

5. Develop a strong introduction, a crucial part of all speeches

Answered: 1 week ago