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?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter10: Short-term Decision Making
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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 overheads (per week)

 

£4,000

   

 

a). If products can be sold up-to their max demand. What will be the maximum profit?

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