Question 3 a. The following data relates to products Able and Baker Able C10 C30 Direct materials per unit Direct labour

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Question 3 A The Following Data Relates To Products Able And Baker Able C10 C30 Direct Materials Per Unit Direct Labour 1 (217.65 KiB) Viewed 20 times

Question 3 a. The following data relates to products Able and Baker Able C10 C30 Direct materials per unit Direct labour: Grinding C5 7 hours 5 hours Per unit Per unit Finishing €7.50 per 15 hours 9 hours hour Per unit Per unit €206.50 Selling price per unit C168.00 Budgeted production 1,200 units 600 units Maximum sales for the period 1,500 units 800 units Additional information: 1. No opening or closing inventory is anticipated. 2. The skilled labour used for the grinding processes is highly specialized and in short supply, although there is just sufficient to meet the budgeted production. However, it will not be possible to increase the supply for the budget period. Required: Determine the optimal production plan and calculate the total contribution it earns for the company. (7.5 marks) per hour product Baker