Choice of product where a limiting factor exists A company is able to produce four products...

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Choice of product where a limiting factor exists A company is able to produce four products and is planning its production mix for the next period. Estimated cost, sales, and production data follow: Product Selling Price/unit Labour (@ £ 5/hr) Material (@£ 1/kg) Contribution Resources/Unit 15 6 10/18/2022 W £ 29 £ 21 £8 £ 10 18 3 6 X £ 36 £ 28 £8 £ 2 35 10 Y 61 £ 45 £16 £ 7 Labour (hours) Materials (Kgs.) 18 Maximum Demand (Units) 5000 5000 5000 Based on the above data, which is the most appropriate mix under the two following assumptions? If labour hours are limited to 50,000 in a period or If material is limited to 110,000 kgs in a period Z £ 51 £ 10 25 12 37 £14 £ 5 12 5000 20 Choice of product where a limiting factor exists A company is able to produce four products and is planning its production mix for the next period. Estimated cost, sales, and production data follow: Product Selling Price/unit Labour (@ £ 5/hr) Material (@£ 1/kg) Contribution Resources/Unit 15 6 10/18/2022 W £ 29 £ 21 £8 £ 10 18 3 6 X £ 36 £ 28 £8 £ 2 35 10 Y 61 £ 45 £16 £ 7 Labour (hours) Materials (Kgs.) 18 Maximum Demand (Units) 5000 5000 5000 Based on the above data, which is the most appropriate mix under the two following assumptions? If labour hours are limited to 50,000 in a period or If material is limited to 110,000 kgs in a period Z £ 51 £ 10 25 12 37 £14 £ 5 12 5000 20

Answer rating: 100% (QA)

To determine the most appropriate product mix given the limiting factors of labor hours and material weight we need to calculate and compare the contribution per unit of limiting factor for each produ... View the full answer