XYZ Ltd produces three products , X Y and Z , The capacity of XYZ Ltd '
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Question:
XYZ Ltd produces three products X Y and ZThe capacity of XYZ Ltds plant is restricted by process alpha. Process alpha is expected to be operational for eighty hours per day and can produce units of X per hour, units of Y per hour and units of Z per hour. Selling prices and material costs for each product are as follows. Product X k per unit material cost k per unit, Product Y selling price k per unit Material cost k per unit, Product Z selling price k per unit Material cost k per unit. Conversion costs are k per day.
Required:
a calculate the profit per day if daily output achieved is units of X units of Y and units of Z
b Calculate the TA ratio for each product.
c In the absence of demand restrictions for the three products ,advise XYZ Ltds management on optimal production plan.
d Distinguish between throughput accounting and limiting factor analysis.
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