ABC Itd company produces three products and is reviewing the production and sales budgets for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Itd company produces three products and is reviewing the production and sales budgets for the next accounting period. The following information is available for the three products: Selling price Labour (£20 per hour) Other variable costs Contribution/unit Maximum demand Required: i. ii. Product P 600 180 £ Product Q £ 1,200 320 (780) 136 420 200 600 (456) 144 600 Product R £ 80 28 Labour hours are strictly limited to 10,800 hours in total. Calculate the optimum product mix and the maximum contribution. £ 200 (108) 92 1,000 A special contract requires 3,500 labour hours. What is the relevant cost of obtaining these hours? ABC Itd company produces three products and is reviewing the production and sales budgets for the next accounting period. The following information is available for the three products: Selling price Labour (£20 per hour) Other variable costs Contribution/unit Maximum demand Required: i. ii. Product P 600 180 £ Product Q £ 1,200 320 (780) 136 420 200 600 (456) 144 600 Product R £ 80 28 Labour hours are strictly limited to 10,800 hours in total. Calculate the optimum product mix and the maximum contribution. £ 200 (108) 92 1,000 A special contract requires 3,500 labour hours. What is the relevant cost of obtaining these hours?
Expert Answer:
Related Book For
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date:
Students also viewed these accounting questions
-
New Century Health Clinic offers preventive medicine and traditional medical care. In your role as an IT consultant, you will help New Century develop a new information system. Background You...
-
1. Does the decision-making process used to select the site for the luge track resemble more of a rational or non rational process? Explain. 2. Which of the seven evidence-based decision making...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
Calculate the component of v = ( 2, 1/2, 3) along w = (1, 2, 2).
-
Immobilization of free-ranging white-tailed deer by drugs allows researchers the opportunity to closely examine deer and gather valuable physiological information. In the study Influence of Physical....
-
Costs of abnormal spoilage are losses. Explain
-
Abbott Industries is a well-known supplier of pharmaceuticals worldwide. Founded by Dr. Wallace Abbott, the company was incorporated in 1900 after he had been developing and making pharmaceuticals...
-
Southwood Furniture Company is a U.S.-based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong...
-
Define the relational model. What is a relational database management system (DBMS)?
-
What is lock de-escalation, and under what conditions is it required why is it not required if the unit of data shipping is an item?
-
The staples inside a stapler are kept in place by a spring with a relaxed length of 0.115 m. If the spring constant is 51.0 N/m, how much elastic potential energy is stored in the spring when its...
-
57. Asuncion received the following royalties from the following sources: Mining claims A novel on seduction and love Basic accounting textbook Music album P 150,000 250,000 80,000 40,000 What is the...
-
3) Betty Bucks has identified an investment project with the following cash flows: Year 1 Cash Flow 2 3 $3,300 $4,400 $5,500 $6,600 What is the future value of these cash flows (in total) if the...
-
How does a whitlow manifest as a consequence of human papillomavirus infection affecting the skin of the hand?
-
Utilizing the link below, please list 3 things you did not know, and if you will now do something different based on what you've learned. ...
-
The fastest land animal is the cheetah, which runs at a constant speed of 101 km/hr. The second fastest is the antelope, which runs at a constant speed of 88 km/hr. Assume both animals are running at...
-
Because entrepreneurs do not have Social Security tax taken out of their income by their employer, they must pay a(n) ________ tax. Question content area bottom Part 1 A. self-employment B. capital...
-
Reconsider Prob. 1474. In order to drain the tank faster, a pump is installed near the tank exit as in Fig. P1475. Determine how much pump power input is necessary to establish an average water...
-
Quince Interests is a partnership with a tax year that ends on September 30, 2013. During that year, Potter, a partner, received $3,000 per month as a guaranteed payment, and his share of partnership...
-
Leslie and Leon Lazo are married and file a joint return for 2013. Leslie's Social Security number is 466-47-3311 and Leon's is 467-74-4451. They live at 143 Snapdragon Drive, Reno, NV 82102. For...
-
Deborah purchases a new $30,000 car in 2013 to use exclusively in her business. If Deborah does not elect to expense or take bonus depreciation in 2013 and holds the car until it is fully...
-
If you make multiple measurements of your height, you are likely to find that the results vary by nearly half an inch in either direction due to measurement error and actual variations in he ight....
-
Loveland, Colorado, is 18 km due south of Fort Collins and 3 1 km due west of Greeley. What is the distance between Fort Collins and Greeley?
-
Migrating geese tend to travel at approximately constant speed, flying in segments that are straight lines. A goose flies 32 km south, then turns to fly 20 km west. Afterward, how far is the goose...
Study smarter with the SolutionInn App