A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine-hours is 360. All the firm’s output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.
A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine-hours is 360. All the firm’s output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 9PA: Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to...
Related questions
Question
A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine-hours is 360. All the firm’s output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,