XYZ Ltd makes 3 products and for the current period there is a shortage of skilled...

 

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XYZ Ltd makes 3 products and for the current period there is a shortage of skilled labour with only 10,000 hours available. The selling price and cost per unit for each of these products is as follows: Product X £ Product Y£ Product Z £ Direct materials 64. 45.54 Direct labour (paid £7/hour) 56. 49.70 Selling price 160. 150. 184 Fixed overheads for the period are £50,000. The maximum demand for each product is: Product X 350 Product Y 550 Product Z 480 Required: Determine the production mix that will maximise profit in the current period and calculate the resulting profit (assume part units can be made). XYZ Ltd makes 3 products and for the current period there is a shortage of skilled labour with only 10,000 hours available. The selling price and cost per unit for each of these products is as follows: Product X £ Product Y£ Product Z £ Direct materials 64. 45.54 Direct labour (paid £7/hour) 56. 49.70 Selling price 160. 150. 184 Fixed overheads for the period are £50,000. The maximum demand for each product is: Product X 350 Product Y 550 Product Z 480 Required: Determine the production mix that will maximise profit in the current period and calculate the resulting profit (assume part units can be made).