Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale price and variable cost per unit are as follows: Explain the term 'limiting factor'. Material A @ RM12/kg Material B Direct labour Variable overhead Selling price Sales units (a) (b) h P RM 6 4 5 2 25 4000 Q RM 4 8 10 2 23 5000 R RM 3 10 10 3 31 8000 S RM 8888 2 Most production resources are in sufficient supply but there will only be 6500 kg of Material A available in the period. The fixed overhead amount to RM20,000 per period. Required: 2 32 6000 Calculate the production quantity of each product to be produced to maximize profits in the period. (15 marks) State the maximum profit. Prudential Ltd makes 4 products, P, Q, R and S from the same materials. The sale price and variable cost per unit are as follows: Explain the term 'limiting factor'. Material A @ RM12/kg Material B Direct labour Variable overhead Selling price Sales units (a) (b) h P RM 6 4 5 2 25 4000 Q RM 4 8 10 2 23 5000 R RM 3 10 10 3 31 8000 S RM 8888 2 Most production resources are in sufficient supply but there will only be 6500 kg of Material A available in the period. The fixed overhead amount to RM20,000 per period. Required: 2 32 6000 Calculate the production quantity of each product to be produced to maximize profits in the period. (15 marks) State the maximum profit.
Expert Answer:
Answer rating: 100% (QA)
A limiting factor is a constraint that limits or restricts other factors from being fully expressed ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Selling price per unit $750 Variable cost per unit $450 Annual fixed cost $180,000 Net income after tax $360,000 Tax rate 25% 1)Reduce the selling price by $60. The sales team forecast that with a...
-
a) Viking Corporation's variable cost per unit produced is $100. Wholesaler Y offers to buy 2,000 additional units at $120 each. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit....
-
1. Within the relevant range: variable cost per unit decreases as production decreases. fixed cost per unit decreases as production decreases. variable cost per unit increases as production...
-
Timco is considering the construction of a new retail outlet. The construction cost will be 400000. Net working capital will increase by 10000. The depreciation is 10 year MACRS. The new location...
-
You own stock in a company that has just initiated employee stock options. How do the employee stock options benefit you as a shareholder?
-
On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for...
-
The case of flow past a cylinder of infinite length normal to the axis was also studied by Stokes. In view of the 2D nature of the problem, it is more convenient to work in \(r, \theta\) coordinates....
-
ADJUSTING NET INCOME FOR CHANGES IN CURRENT ASSETS AND CURRENT LIABILITIES Lloyd Company reported net income of $25,000 for 20-2. The December 31 balances of the current assets and current...
-
Ashley and Duncan just created their January 2019 income and expense statement. They spent their combined $3,500 gross monthly income on the following expenses: $350 for tithing, $1,000 on rent, $400...
-
Q1. Study the Statement of Stockholders Equity for the five years presented. a. During fiscal year ended (FYE) 6/30/2003 stockholders equity increased primarily as a result of (_______________ /...
-
Luploid Co is the parent company of a group undergoing rapid expansion through acquisition. Luploid Co has acquired two subsidiaries in recent years, Colyson Co and Hammond Co. The current financial...
-
A company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:...
-
To convert a covariance to a correlation coefficient, I should divide by the product of the standard deviations of the two variables. True False Question 6 (10 points) A company paid a 1 dollar...
-
Now imagine that you're writing client code for your revised ValuePair class - i.e., code in a different class that uses ValuePair objects. For each of the following tasks, write a single line of...
-
A is a start - up company operating in the social network space. It believes it can become the next facebook with its new user experience. However, it has not been able to attain the aspired user...
-
The algorithm Seq(n) is shown below. What is value returned by Seq(2)? Seq(n) { if (n = 1) else return 1 if (n = 2) return 2 else if (n = 3) return 3 else return (Seq(n-3) + Seq(n-2)) }
-
Dacosta Corporation had only one business going on May 1. Charged for the job with $2,250 in direct materials, $6,990 in direct labor and $10,062 overall manufacturing cost. The company assigns...
-
As you rewrite these sentences, replace the cliches and buzzwords with plain language (if you don't recognize any of these terms, you can find definitions online): a. Being a jack-of-all-trades, Dave...
-
Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue.......... $50,000 Cost of goods sold (all variable)... 26,000 Gross...
-
Marling Machine Works produces soft serve ice cream freezers. The freezers sell for $12,000, and variable costs total $8,200 per unit. Marling incurs $6,840,000 in fixed costs during the year. The...
-
The Seago Company is planning to purchase $500,000 of equipment with an estimated seven-year life and no estimated salvage value . The company has projected the following annual cash flows for the...
-
This project is intended as an example of how the structure of a network is related to its stability and at the same time as an illustration of how difficult it can be to settle the actual structure...
-
Consider the financial system of a country like Japan for example and discuss which ingredients we may have to include in a model that can address the reason for the observed recurrent financial...
-
Discuss how one decides whether a model is too simple or unnecessarily complicated.
Study smarter with the SolutionInn App