Question
- The following details relate to ready meals that are prepared by a food processing company: A $ per meal B $ per meal Selling
- The following details relate to ready meals that are prepared by a food processing company:
|
| A $ per meal | B $ per meal |
| Selling price | 50 | 30 |
| Variable costs | 36 | 18 |
| Fixed costs | 5 | 3 |
| Profit | 9 | 9 |
| Oven time (minutes required per ready meal) | 10 | 4 |
Required:
Show which ready meal is the most profitable for the company as per contribution per limiting factor? (Per minute). Comment on the results.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
