Albatross Ltd, manufacturers of components for the automotive industry, is preparing their production budget for the...

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Albatross Ltd, manufacturers of components for the automotive industry, is preparing their production budget for the coming quarter. The company has recently experienced a downturn due to the global pandemic and wishes to investigate four types of components noted as products. 1 to 4, the data for which are as follows: Product Direct Material Variable Overhead. Selling Price Direct Labor hour Type A Type B Type C Type A 12,000 hours Type B-40,500 hours Type C - 56,000 hours Product 1 35 24 Product 3-2,250 units 255 Hours per Product 4 - 1,500 units unit Required: 12 Product 1 unlimited demand Product 2 unlimited demand 0 The maximum hours available in each type are: 0 Product 2 49 25 208 Hours per unit 9 0 0 Product 3 31 22 381 Hours per unit 0 15 The fixed costs of the company are €21,000 per quarter. Each type of labor is paid €12 per hour but because of the skills involved, an employee of one type cannot be used for work normally done by another type. 8 Product 4 35 22 806 Hours per unit The marketing department judges that, at the present selling prices, the demand for the products is likely to be. 0 15 38 Calculate the product mix that will maximize profit, and the amount of the profit from such Albatross Ltd, manufacturers of components for the automotive industry, is preparing their production budget for the coming quarter. The company has recently experienced a downturn due to the global pandemic and wishes to investigate four types of components noted as products. 1 to 4, the data for which are as follows: Product Direct Material Variable Overhead. Selling Price Direct Labor hour Type A Type B Type C Type A 12,000 hours Type B-40,500 hours Type C - 56,000 hours Product 1 35 24 Product 3-2,250 units 255 Hours per Product 4 - 1,500 units unit Required: 12 Product 1 unlimited demand Product 2 unlimited demand 0 The maximum hours available in each type are: 0 Product 2 49 25 208 Hours per unit 9 0 0 Product 3 31 22 381 Hours per unit 0 15 The fixed costs of the company are €21,000 per quarter. Each type of labor is paid €12 per hour but because of the skills involved, an employee of one type cannot be used for work normally done by another type. 8 Product 4 35 22 806 Hours per unit The marketing department judges that, at the present selling prices, the demand for the products is likely to be. 0 15 38 Calculate the product mix that will maximize profit, and the amount of the profit from such

Answer rating: 100% (QA)

To calculate the product mix that will maximize profit for Albatross Ltd we need to determine the optimal quantity of each product to produce This can be done by considering the contribution margin pe... View the full answer