b. d. calculate which of the components, K or T. should be produced and sold...
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b. с d. calculate which of the components, K or T. should be produced and sold in the year in order to maximise profits. You should state the number of units to be produced and sold and the resulting contribution. (10 Marks) Benco Limited wishes to consider additional sales outlets which could earn contribution at the rate of N400 and N600 per machine hour for machine line A and line 8 respectively. Such additional sales outlets would be taken up only to utilise any surplus hours not required for the production of the components. calculate whether Benco Limited should now produce either component K or T and what quantity to be produced and the resulting contribution. (9 Marks) suggest ways in which the company may overcome the capacity constraints which limit the opportunities available to it in the year, and indicate the types of costs which may be incurred in overcoming each constraint. (10 Marks) illustrate the use of opportunity cost in the charging of each of material. labour and overhead elements in comparison with historic absorption cost elements. For each element, you should illustrate your answer with figures of your choice. (11 Marks) (Total: 40 Marks) b. с d. calculate which of the components, K or T. should be produced and sold in the year in order to maximise profits. You should state the number of units to be produced and sold and the resulting contribution. (10 Marks) Benco Limited wishes to consider additional sales outlets which could earn contribution at the rate of N400 and N600 per machine hour for machine line A and line 8 respectively. Such additional sales outlets would be taken up only to utilise any surplus hours not required for the production of the components. calculate whether Benco Limited should now produce either component K or T and what quantity to be produced and the resulting contribution. (9 Marks) suggest ways in which the company may overcome the capacity constraints which limit the opportunities available to it in the year, and indicate the types of costs which may be incurred in overcoming each constraint. (10 Marks) illustrate the use of opportunity cost in the charging of each of material. labour and overhead elements in comparison with historic absorption cost elements. For each element, you should illustrate your answer with figures of your choice. (11 Marks) (Total: 40 Marks)
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Answer rating: 100% (QA)
To answer your question Ill break it down into four parts 1 Maximizing Profits To determine which component K or T should be produced and sold in order to maximize profits Benco Limited needs to consi... View the full answer
Related Book For
College Algebra Graphs and Models
ISBN: 978-0321845405
5th edition
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna
Posted Date:
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