Question: please can you help me with how we work this equation.I need to know how to work out profit one type, but recently a decision

 please can you help me with how we work this equation.I

need to know how to work out profit one type, but recently

please can you help me with how we work this equation.I need to know how to work out profit

one type, but recently a decision was made to expand the product range into two types. The following data pertains to each switchbox: Existing product 2686 New product Z797 (R) (R) Selling price per unit 8 000 6 800 Variable costs per unit: - Direct materials 6 000 5 600 Direct labour 500 400 500 200 Manufacturing overhead Specific fixed costs per day 10 000 5 000 Zek Ltd's total general fixed costs per day amount to R27 000. The organisation operates its factory 24 hours per day and this equates to one operating cycle. Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows: Assemble Test 2686 2 6 Z797 6 3 Zek Ltd is limited to 600 assembly hours and 400 testing hours in one operating cycle. Management is anxious to ascertain the following, but are unsure as to how to determine these factors: 1. The most profitable daily (that is, in one operating cycle) production combination. 1.3 Determine, using graphic linear programming, the production combination for Zek Ltd which maximises daily profit. (Draw the graph in your answer book. Ensure that you label the graph comprehensively and clearly.) (17) 1.4 Solving algebraically, verify your answer in (C). (2) 1.5 Calculate the production mix which will achieve the desired daily profit of R10 000 (8)

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!