ECR question
sanna
Registered Posts: 13 New contributor 🐸
I need some help. I have a question regarding Limitating factors
there are 3 departments and Limited Direct Labour Hours availaible and needed to work out the Profit Maximising
I.e
Output Sold per unit during Month 80
sales revenue 225
Direct Materials per unit 25
Direct Labour Hours per unit
Dept A 2
Dept B 7
Direct Labour per Hour per unit
Dept A 9.10
Dept B 5.10
Fixed Costs for the month Are £4000
Limited hours of 400 available- how do you work out the profit maximising and how many units can be produced.
How much
there are 3 departments and Limited Direct Labour Hours availaible and needed to work out the Profit Maximising
I.e
Output Sold per unit during Month 80
sales revenue 225
Direct Materials per unit 25
Direct Labour Hours per unit
Dept A 2
Dept B 7
Direct Labour per Hour per unit
Dept A 9.10
Dept B 5.10
Fixed Costs for the month Are £4000
Limited hours of 400 available- how do you work out the profit maximising and how many units can be produced.
How much
0
Comments
-
Not enough information given!
you need to calculate contribution per unit.
then calculate contrubution per labour hour per unit to decide which unit you need to produce first, followed by next highest contribution per unit ......and the allocate the remaining hours to the productions of other units.
calaculate total maximum contribution from production lesss fixed costs equals maximum profit0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 583 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership