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Suppose you are the CEO of Green Ltd, a canned food manufacturer Your cost accountant provided you with the following information about the company's two

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Suppose you are the CEO of Green Ltd, a canned food manufacturer Your cost accountant provided you with the following information about the company's two products in 2017: Corn soup Supreme chicken soup (per can) $22 (per can) S12 S8 S16 Direct material Direct labour Manufacturing overhead (a$16 per machine hour) Cost if purchased from an outside supplier Annual sales (no. of cans) 40,000 cans S32 S25 S55 30,000 cans Past experience shows that the fixed manufacturing overhead component included in the cost per machine hour averages $10. Your company has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required (a) With all other things constant, if 50,000 machine hours are available in 2018, and you want to follow an optimal strategy, how many units of each product should the company manufacture? How many units of each product should be purchased from outside suppliers? Explain your rationale and show your workings (b) Suppose your company want to implement a new direct sales model that allows customers to have tailor-made canned soups. Design relevant balance scorecard measures for this new line of business. You need to suggest two measures for each of the components of the balanced scorecard

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