AD Boutique Ltd. is Oman based manufacturing company producing Abayas and Dishdasha. Both the products are...
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AD Boutique Ltd. is Oman based manufacturing company producing Abayas and Dishdasha. Both the products are designed by expert designers and stitched with the special material imported from different parts of the world. Skilled labourers are required for stitching the product as it is of special quality. Recently company is struggling with shortage of resources. Demand of the products is consistent. Due to the shortage of a particular resource the company has difficulty in deciding on the optimum production plan for the forthcoming period. You have been asked to analyze the situation and have been presented with the following data: Production requirements Fabric AB(Meters) Direct Labour: Skilled (Hours) Semi -skilled (Hours) Variable overhead per unit (OMR) Abaya per unit 5.5 Abaya Dish Dasha 1.5 0.5 16 Dishdasha per unit Selling Price (OMR) 250 325 5.6 The availability of the material and labour resources are as below: Fabric AB 63500 Skilled labour 133550 1.25 0.5 15 The expected Demand and selling price for the Bareeg Ltd. Company are as follows: Cost OMR 12 per meter Demand 3,000 8,000 15 per hour 11 per hour Semi-Skilled Unlimited -Calculate total contribution -Advice the Company of the optimum production Plan of Abaya and Dishdasha for the purpose of maximizing contribution earned in the forthcoming period using all the steps. (All the calculation should be up to 2 decimal places.) AD Boutique Ltd. is Oman based manufacturing company producing Abayas and Dishdasha. Both the products are designed by expert designers and stitched with the special material imported from different parts of the world. Skilled labourers are required for stitching the product as it is of special quality. Recently company is struggling with shortage of resources. Demand of the products is consistent. Due to the shortage of a particular resource the company has difficulty in deciding on the optimum production plan for the forthcoming period. You have been asked to analyze the situation and have been presented with the following data: Production requirements Fabric AB(Meters) Direct Labour: Skilled (Hours) Semi -skilled (Hours) Variable overhead per unit (OMR) Abaya per unit 5.5 Abaya Dish Dasha 1.5 0.5 16 Dishdasha per unit Selling Price (OMR) 250 325 5.6 The availability of the material and labour resources are as below: Fabric AB 63500 Skilled labour 133550 1.25 0.5 15 The expected Demand and selling price for the Bareeg Ltd. Company are as follows: Cost OMR 12 per meter Demand 3,000 8,000 15 per hour 11 per hour Semi-Skilled Unlimited -Calculate total contribution -Advice the Company of the optimum production Plan of Abaya and Dishdasha for the purpose of maximizing contribution earned in the forthcoming period using all the steps. (All the calculation should be up to 2 decimal places.)
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ANSWER Total contribution Total revenue Total variable costs Total revenue Selling price per ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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