AB Ltd makes two products, the Zee and the Xee. Unit variable costs are as follows....
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AB Ltd makes two products, the Zee and the Xee. Unit variable costs are as follows. Zee RM Direct Materials Direct Labour (RM 12 per hour) Variable Overhead Total variable cost The sales price per unit is RM 56 per Zee and RM 44 per Xee. During July 2022 the available direct labour is limited to 32,000 hours, Sales demand in July is expected to be 12,000 units for Zee and 20,000 units for Xee. 4 24 4 Xee RM 32 12 12 4 28 Required: Determine the profit - maximizing production mix, assuming that monthly fixed costs are RM 80,000; and that opening stocks of finished goods and work in progress are nil. AB Ltd makes two products, the Zee and the Xee. Unit variable costs are as follows. Zee RM Direct Materials Direct Labour (RM 12 per hour) Variable Overhead Total variable cost The sales price per unit is RM 56 per Zee and RM 44 per Xee. During July 2022 the available direct labour is limited to 32,000 hours, Sales demand in July is expected to be 12,000 units for Zee and 20,000 units for Xee. 4 24 4 Xee RM 32 12 12 4 28 Required: Determine the profit - maximizing production mix, assuming that monthly fixed costs are RM 80,000; and that opening stocks of finished goods and work in progress are nil.
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Answer rating: 100% (QA)
To determine the profitmaximizing production mix for Zee and Xee we need to calculate the contribution margin for each product and then optimize the p... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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