Question
TheDon Ltd produces three products but the number of machine hours available is limited to 33000 hours. Details of each product are as follows: A
TheDon Ltd produces three products but the number of machine hours available is limited to 33000 hours. Details of each product are as follows:
|
|
| A |
| B |
| C |
| Selling price per unit |
| 40 |
| 60 |
| 66 |
| Variable cost per unit |
| 30 |
| 40 |
| 30 |
| Machine hours per unit |
| 4 |
| 10 |
| 12 |
| Maximum production and sales (units) |
| 2000 |
| 1000 |
| 2000 |
The companys fixed cost per annum is 32,000.
Required:
- Determine the optimum product mix for TheDon Ltd.
- Prepare the companys Budgeted profit and loss account for the year.
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Wiley CPA Exam Review Auditing And Attestation 2011
Authors: Patrick R. Delaney, O. Ray Whittington
8th Edition
0470554347, 978-0470554340
