Milton Ltd makes three products, Green, Orange and Purple. Unit costs and revenues relating to the...

 

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Milton Ltd makes three products, Green, Orange and Purple. Unit costs and revenues relating to the three products are as follows: Selling price Direct materials Direct labour Machine time per unit Labour hour per unit Expected demand per month Green Select one: O a. Green, Purple and Orange O b. Green, Orange and Purple O c. Purple, Green and Orange Od. Orange, Green and Purple £ 90 30 25 4 hours 5 hours 1,000 units Orange £ 150 40 45 10 hours 9 hours 500 units Purple £ 240 50 80 20 hours 16 hours 250 units Suppose Milton Ltd has only 12,000 machine hours available in the coming month. In order to maximise the company's contribution from these products, in which sequence should Milton Ltd be producing its products? Milton Ltd makes three products, Green, Orange and Purple. Unit costs and revenues relating to the three products are as follows: Selling price Direct materials Direct labour Machine time per unit Labour hour per unit Expected demand per month Green Select one: O a. Green, Purple and Orange O b. Green, Orange and Purple O c. Purple, Green and Orange Od. Orange, Green and Purple £ 90 30 25 4 hours 5 hours 1,000 units Orange £ 150 40 45 10 hours 9 hours 500 units Purple £ 240 50 80 20 hours 16 hours 250 units Suppose Milton Ltd has only 12,000 machine hours available in the coming month. In order to maximise the company's contribution from these products, in which sequence should Milton Ltd be producing its products?

Answer rating: 100% (QA)

SOLUTION The correct answer is a Green Purple and Orange Calculation In order to arrive at t... View the full answer