Question
The next six questions are based on the following information. Forthvale Ltd produces four products. Estimated cost, sales, and production data for the next period
The next six questions are based on the following information.
Forthvale Ltd produces four products. Estimated cost, sales, and production data for the next period are given below.
Able | Bayble | Cable | Dabble | ||
$ | $ | $ | $ | ||
Selling price per unit | 100 | 150 | 200 | 180 | |
Labour (at $10 per hour) | 30 | 20 | 70 | 50 | |
Materials (at $5 per kg) | 30 | 90 | 50 | 60 | |
Resources per unit | Able | Bayble | Cable | Dabble | |
Labour hours | 3 | 2 | 7 | 5 | |
Materials kg. | 6 | 18 | 10 | 12 | |
Maximum demand/units | 5,000 | 5,000 | 5,000 | 5,000 |
Fixed costs are $200,000 .
Question text
Based on the above data, and assuming full production, which product gives the best contribution?
Select one:
a.Able
b.Bayble
c.Cable
d.Dabble
Question text
Based on the above data, assuming full production and that all production is sold, what profit can Forthvale expect in the period?
Select one:
a.$3,150,000
b.$2,950,000
c.$1,150,000
d.$950,000
Question text
Based on the above data, and assuming Labour hours are limited to 50,000 in a period, which product gives the best contribution per limiting factor?
Select one:
a.Able
b.Bayble
c.Cable
d.Dabble
Question text
Based on the above data, and assuming Labour hours are limited to 50,000 in a period, what is the maximum profit Forthvale can expect in the period?
Select one:
a.$1,150,000
b.$950,000
c.$750,000
d.$550,000
Question text
Based on the above data, and assuming Material is limited to 110,000 KGs in a period, which product gives the best contribution per limiting factor?
Select one:
a. Able
b. Bayble
c. Cable
d. Dabble
Question text
Based on the above data, and assuming Material is limited to 110,000 KGs in a period, what is the maximum profit Forthvale can expect in the period?
Select one:
a. $175,000
b. $375,000
c. $575,000
d. $775,000
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