Use the information provided below to determine the optimum mix of products that should be (7...

 

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Use the information provided below to determine the optimum mix of products that should be (7 marks) produced by Volex Limited. Also indicate the total contribution that would be earned. INFORMATION Volex Limited has only 2 500 machine hours available to produce three products viz. Product A, Product B and Product C. The following budgeted information relates to the three products for January 2024: Product A Product B R60 R75 R36 R30 4 hours 5 hours 280 units 300 units Sales price per unit Variable costs per unit Machine hours required per unit Estimated sales demand Product C R90 R60 2.5 hours 320 units Use the information provided below to determine the optimum mix of products that should be (7 marks) produced by Volex Limited. Also indicate the total contribution that would be earned. INFORMATION Volex Limited has only 2 500 machine hours available to produce three products viz. Product A, Product B and Product C. The following budgeted information relates to the three products for January 2024: Product A Product B R60 R75 R36 R30 4 hours 5 hours 280 units 300 units Sales price per unit Variable costs per unit Machine hours required per unit Estimated sales demand Product C R90 R60 2.5 hours 320 units

Answer rating: 100% (QA)

Lets calculate the contribution per machine hour for each product Product A Contribution per unit Sa... View the full answer