Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
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Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Merlot Manufacturing Ltd makes three different products, the details of which are as follows:
Product (code name)
167X
325Y
7422
Selling price per unit (£)
40
30
28
Variable cost per unit (£)
15
18
14
Weekly demand (units)
45
50
20
Skilled labour time per unit (hours)
3.
Skilled labour time is limited to 200 hours a week.
Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up
units of product 167X
units of product 325Y
units of product 742Z
Enter any number or expression in each of the edit fields.
26
Transcribed Image Text:Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) 3. Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z Enter any number or expression in each of the edit fields. 26
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