Trinity product Limited makes and sells three types of electronic security systems for which the following information
Question:
Trinity product Limited makes and sells three types of electronic security systems for which the following information is available
Standard cost and selling price per unit
Day Scan Night scanOmni scan
GHGHGH
Material70110155
Manufacturing labour405570
Installation labour243244
Variable overheads162028
Selling price250320460
Fixed cost for the period are GH450,000 and installation labour, which is highly skilled is available for 25,000 hours only in a period and is paid GH8 per hour. Both manufacturing and installation labour are variable cost. The maximum demand for the period is: Day scan2,000 units;Night scan3,000 units;Omni scan1,800 units.
Required
a)Calculate the shortfall (if any) in hours of installation labour.
b)Determine the best production plan assuming the company wishes to maximize profit.
c)calculate the maximum profit that could be achieved from the plan in part (b) above
d)Having carried out an investigation of the availability of installation labour, the firm thinks that by offering GHS 12 per hour, additional installation would become available and thus overcome the labour shortage. Based on the result obtained above, you are required to advice the firm whether or not to implement this proposal.
Expert Answer:
a To calculate the shortfall in hours of installation labor we first need to determine the total hours of installation labor required for each product ... View the full answer
