Question: Oval CUCK HERE TO SAVE YOUR WORK 30 Question 2 34 Graphite Ltd produces three products. Data concoming the selling prices and unit costs of

 Oval CUCK HERE TO SAVE YOUR WORK 30 Question 2 34
Graphite Ltd produces three products. Data concoming the selling prices and unit

Oval CUCK HERE TO SAVE YOUR WORK 30 Question 2 34 Graphite Ltd produces three products. Data concoming the selling prices and unit costs of the three products appear below. 36 Products 37 X Y Z 28 Selling price $80 $60 590 39 Variable costs $50.00 $10.00 $5500 40 Fixed costs $25.00 $8.00 $22.00 41 Grinding machine time (mins) 10 S 7 42 43 Fixed costs are applied to the products on the basis of direct labour hous. 44 45 Demand for the three products exceeds the company's productive capacity. The grinding machine is the constraint, with only 46 2.400 minutes of grinding machine time available this week 47 Font Name Front See - A Wimplex a Copy Mer Cell CK HERE TO SAVE YOUR WORK 030 S Demand for the three products exceeds the company's productive capacity. The prinding machine is the consumint, with only 6 2.400 minutes of grinding machine time available this week ZA 8 Required: 19 Given the grinding machine constraint, which product should be emphasized? Support your answer with appropriate calculation. (9 marles) SO S1 Products 52 X Y 53 Selling price 54 Variable costs 55 Contribution margin 56 Grinding machine time (mins) 57 Contribution margin per Minute 58 59 Which one of the products should the company focus on? (1 mark) 60 61 62 63 64

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!