Help with dec06 ecr paper

debbieh

Can any one help with section 2 task 2.4, is a easy way to work out the question?

Thanks

SLM

What part of it are you not sure of?

debbieh

I can work out the contribution/unit V IS 10 W IS 15
Machine hours/unit they give you that 2 and 5
Contribution/machine hour is 10/2 and 15/3 so the answer is 5 and 3

So product V will be ist and W 2nd.

You have 3,000 hours available, how do allocated between the two?

Then I am not sure after that to get the units made and Total Contribtion earned.

Really appreticate your help.

Debbie

definite.studies

Now you know which product has priority ie V, you look at the forecast demand of 1000 units and make that number of product V. There is no point in making more than 1000 if you don't expect to sell them!

That will use 2 hr x 1000 units = 2000 hrs, leaving 1000 hours from the 3000 total for the other unit.

Product W takes 5 machine hours, so we can only make 1000 hr / 5 hr = 200 units of W.

Hope this helps! :001_smile:

debbieh

Thanks a lot, understand it now.

Exam on Monday 3rd time lucky, I pass section 1 every time, fail section 2 twice.