HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product.
HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...
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HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product.
Product |
|||
A |
B |
C |
|
Selling price per unit |
$50 |
$54 |
$84 |
Variable costs per unit |
$10 |
$12 |
$20 |
Labour hours |
2 |
3 |
4 |
Maximum demand |
40,000 |
20,000 |
30,000 |
HydroPlus is facing a shortage of skilled labour and wishes to maximise the profitability of the company. Assuming all relevant information is provided, in what order should HydoPlus manufacture its products to maximise profit in the current year?
Question 47 options:
C then A |
|
A then C |
|
A, C then B |
|
None of the given answers |
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