Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bell D_bell Selling Price £150 £190 Variable Costs £110 £120 Direct labour hours per unit 4 6 Hours Direct labour hours available (per week) 900 Hours Maximum demand 100 140 Fixed overheads (per week) £4,000 a). If products can be sold up-to their max demand. What will be the maximum profit?
Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bell D_bell Selling Price £150 £190 Variable Costs £110 £120 Direct labour hours per unit 4 6 Hours Direct labour hours available (per week) 900 Hours Maximum demand 100 140 Fixed overheads (per week) £4,000 a). If products can be sold up-to their max demand. What will be the maximum profit?
Chapter10: Short-term Decision Making
Section: Chapter Questions
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Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited.
Information/data: |
E_bell |
D_bell |
|||
Selling Price |
£150 |
£190 |
|||
Variable Costs |
£110 |
£120 |
|||
Direct labour hours per unit |
4 |
6 |
Hours |
||
Direct labour hours available (per week) |
900 |
Hours |
|||
Maximum demand |
100 |
140 |
|||
Fixed |
£4,000 |
a). If products can be sold up-to their max demand. What will be the maximum profit?
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