Cost and selling price information for each of the three machine types that the company produces are as follows:” “Type AType BType CSelling price (new price per sales director’s forecasts)£6,000£5,500£4,500Pelanium usage per machine (Kg)2.532.8Other raw materials costs£1,500£1,400£880Variable cost of labour£1,750£1,310£960Demand per year353042”“Required:” “Calculate the contribution per unit of limiting factor for each of the three machine types.”Explain in details how you got answers

Contribution - It the excess amount of sales over a variable cost. It is the difference amount of…

Answered: Cost and selling price information for…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 8P: The production of a new product required Zion Manufacturing Co. to lease additional plant...

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Cost and selling price information for each of the three machine types that the company produces are as follows:”

	“Type A	Type B	Type C
Selling price (new price per sales director’s forecasts)	£6,000	£5,500	£4,500
Pelanium usage per machine (Kg)	2.5	3	2.8
Other raw materials costs	£1,500	£1,400	£880
Variable cost of labour	£1,750	£1,310	£960
Demand per year	35	30	42”

“Required:”

“Calculate the contribution per unit of limiting factor for each of the three machine types.”
Explain in details how you got answers

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