Problem 3 (Product Mix) Data concerning four product lines are as follows: Product Line B A...

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Problem 3 (Product Mix) Data concerning four product lines are as follows: Product Line B A P25 P10 D P8 Selling price per unit P30 10 5 4 25 Variable cost per unit 10 hrs. 4 hrs. 1 hr. Hours required for each unit Market limit (unit) 5 hrs. None None 8,000 P100,000 4,000 Total fixed cost 96,000 hours Total hours available Required: 1. Based on these data, choose the best product combination. 2. How would the answer change if there are no market limitations on any of the products? How much greater is the profit from this combination of products than the profit associated with the combination in (1)? Problem 3 (Product Mix) Data concerning four product lines are as follows: Product Line B A P25 P10 D P8 Selling price per unit P30 10 5 4 25 Variable cost per unit 10 hrs. 4 hrs. 1 hr. Hours required for each unit Market limit (unit) 5 hrs. None None 8,000 P100,000 4,000 Total fixed cost 96,000 hours Total hours available Required: 1. Based on these data, choose the best product combination. 2. How would the answer change if there are no market limitations on any of the products? How much greater is the profit from this combination of products than the profit associated with the combination in (1)?

Answer rating: 100% (QA)

To solve this problem we need to follow these steps 1 Calculate the contribution margin per unit for ... View the full answer