The managing director of ABC Limited is setting the production plan for the next financial year. ABC has a shortage of skilled labour and wishes to maximise the profitability of the company. ABC manufactures three products X, Y and Z. There is 200 000 hours of skilled labour hours available in the year at a cost of $10 per hour. The following information relates to each product. Selling Price Material cost per 10 unit Labour hours per unit Maximum demand X A. Z then X B. X then Z C. X, Y and then Z D. Z, X and then Y E. X, Z and then Y 50 2 Y 54 12 3 Z 84 20 4 Assuming all relevant information is provided, in what order should ABC manufacture to maximize profit in the current year? Select one: 40000 20000 40000

The managing director of ABC Limited is setting the production plan for the next financial year. ABC has a shortage of skilled labour and wishes to maximise the profitability of the company. ABC manufactures three products X, Y and Z. There is 200 000 hours of skilled labour hours available in the year at a cost of $10 per hour. The following information relates to each product. Selling Price Material cost per 10 unit Labour hours per unit Maximum demand X A. Z then X B. X then Z C. X, Y and then Z D. Z, X and then Y E. X, Z and then Y 50 2 Y 54 12 3 Z 84 20 4 Assuming all relevant information is provided, in what order should ABC manufacture to maximize profit in the current year? Select one: 40000 20000 40000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1PB: Variety Artisans has a bottleneck in their production that occurs within the engraving department....

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