Question 2 A company produces two products in three departments. Details are shown below regarding the time per unit required in each department, the available hours in each department and the contribution per unit of each product: Resources Product X Product Y Available hours hours per unit hours per unit Department A 8 10 11,000 Department B 4 10 9,000 Department C 12 6 12,000 Contribution per unit $4 $8 There is unlimited demand for Product X, but demand for Product Y is limited to 600 units per annum. Requirement Determine, using a step-by-step approach, what the optimum production plan is.
Question 2 A company produces two products in three departments. Details are shown below regarding the time per unit required in each department, the available hours in each department and the contribution per unit of each product: Resources Product X Product Y Available hours hours per unit hours per unit Department A 8 10 11,000 Department B 4 10 9,000 Department C 12 6 12,000 Contribution per unit $4 $8 There is unlimited demand for Product X, but demand for Product Y is limited to 600 units per annum. Requirement Determine, using a step-by-step approach, what the optimum production plan is.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 38E: (Appendix 11A) Manufacturing Cycle Efficiency Ventris Company found that one of its manufacturing...
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Question 2
A company produces two products in three departments. Details are shown below regarding the time per unit required in each department, the available hours in each department and the contribution per unit of each product:
|
Resources |
Product X |
Product Y |
Available hours |
|
|
hours per unit |
hours per unit |
|
|
Department A |
8 |
10 |
11,000 |
|
Department B |
4 |
10 |
9,000 |
|
Department C |
12 |
6 |
12,000 |
|
Contribution per unit |
$4 |
$8 |
|
There is unlimited demand for Product X, but demand for Product Y is limited to 600 units per annum.
Requirement
Determine, using a step-by-step approach, what the optimum production plan is.
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