Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale...

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Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale price and variable cost per unit are as follows: Explain the term 'limiting factor'. Material A @ RM12/kg Material B Direct labour Variable overhead Selling price Sales units (a) (b) h P RM 6 4 5 2 25 4000 Q RM 4 8 10 2 23 5000 R RM 3 10 10 3 31 8000 S RM 8888 2 Most production resources are in sufficient supply but there will only be 6500 kg of Material A available in the period. The fixed overhead amount to RM20,000 per period. Required: 2 32 6000 Calculate the production quantity of each product to be produced to maximize profits in the period. (15 marks) State the maximum profit. Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale price and variable cost per unit are as follows: Explain the term 'limiting factor'. Material A @ RM12/kg Material B Direct labour Variable overhead Selling price Sales units (a) (b) h P RM 6 4 5 2 25 4000 Q RM 4 8 10 2 23 5000 R RM 3 10 10 3 31 8000 S RM 8888 2 Most production resources are in sufficient supply but there will only be 6500 kg of Material A available in the period. The fixed overhead amount to RM20,000 per period. Required: 2 32 6000 Calculate the production quantity of each product to be produced to maximize profits in the period. (15 marks) State the maximum profit.

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A limiting factor is a constraint that limits or restricts other factors from being fully expressed ... View the full answer