ABC Ltd makes three products: A, B and C. Variable costs are for the use of...

 

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ABC Ltd makes three products: A, B and C. Variable costs are for the use of raw materials X and Y and for direct labour. Quantities used to make one unit of each product are shown in the table, together with selling price per unit: product A B C (ii) X kg 1 0.3 0.6 Y litres 0.2 0.4 0.3 D lab minutes 12 10 15 Selling price £ per unit X costs £2 per kg, Y costs £3 per litre and labour is £15 per hour. Required: (i) 16 18 14 For each of A, B and C individually, calculate the breakeven quantity needed if the fixed costs amount to £5,000. Monthly demand for ABC Limited's products is thought to be A 400 units, B: 500 units and C: 200 units. a) Only 550 kg of X are available. b) Only 200 litres of Y are available. c) Only 125 hours of labour are available. How many units of each product would be manufactured to maximise profit if overall the fixed costs of the company are £5,000 and inputs are restricted as follows: ABC Ltd makes three products: A, B and C. Variable costs are for the use of raw materials X and Y and for direct labour. Quantities used to make one unit of each product are shown in the table, together with selling price per unit: product A B C (ii) X kg 1 0.3 0.6 Y litres 0.2 0.4 0.3 D lab minutes 12 10 15 Selling price £ per unit X costs £2 per kg, Y costs £3 per litre and labour is £15 per hour. Required: (i) 16 18 14 For each of A, B and C individually, calculate the breakeven quantity needed if the fixed costs amount to £5,000. Monthly demand for ABC Limited's products is thought to be A 400 units, B: 500 units and C: 200 units. a) Only 550 kg of X are available. b) Only 200 litres of Y are available. c) Only 125 hours of labour are available. How many units of each product would be manufactured to maximise profit if overall the fixed costs of the company are £5,000 and inputs are restricted as follows:

Answer rating: 100% (QA)

i Requirement of X x Cost of X per kg Cost of X required a Requirement of Y x Cost of Y per ltr Cost ... View the full answer