A company has the following production plan for its nextfour-week accounting period. The plan utilizes capacity fullyPlanned output is equal to the maximum demand perproduct
Product
R
S
T
Selling price per unit
£400
£500
£350
Direct labor hours per unit
4
6
3
Raw material cost per unit
£70
£140
£100
Variable overhead cost per unit
£80
£60
£60
Allocated fixed costs per units
£40
£50
£60
Output (units)
100
500
400
Direct labour is currently paid £30 per hour, and isthreatening to go on strike for three weeks in the next accountingperiod
If the strike goes ahead, which of the followingproduction plans should be chosen it profit is to bemaximised?
A R only
B T only
C R and S only
D R and T only
A company has the following production plan for its next four-week accounting period. The plan utilizes capacity fully P
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