Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Time Tert 2:28:0 A company has several of its staff absent due to being sick with Covid-19 or in isolation and can only produce

image text in transcribed

Time Tert 2:28:0 A company has several of its staff absent due to being sick with Covid-19 or in isolation and can only produce a limited quantity of products due to this short of more labour hours (DLHs). It is expected that this will last for up to three months. The details for two of its product lines including the weekly demand for these products are given below. As can be seen, not all production is possible of both these two products during this time of capacity constraint. Product A Product B Sell Price (per unit) $2.50 $5.60 Variable production costs per unit $0.90 $2.30 Contribution margin (SP-VC) $1.60 $3.30 Labour Hour Time to produce per unit: 0.01 0.02 Weekly Demand (if all orders could be fulfilled in metres) 100000 80000 Required: Based on the quantity your suggested in your previous answer, calculate the total contribution margin that the company would make each week if they follow your advice and produce the quantities suggested while they only had 1800 labour hours available each week? (2 Marks) Note: Do NOT use dollar signs ($), commas etc. only enter the whole dollar amount. e.g. If you calculate the company would make $1000 only enter 1000 as your answer.

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

9780077506902, 78025540, 77506901, 978-0078025549

More Books

Students also viewed these Accounting questions

Question

Which power plant has high load factor?

Answered: 1 week ago

Question

=+b) Comparing the sweetness of a diet drink (rated from 1 to

Answered: 1 week ago