MDCL Sample assesemnt 2 Q8a

Does anyone know how to calculate the £1785, the maximum profit resulting from the optimal production plan ?

Comments

  • amandagarratt
    amandagarratt Registered, Tutor Posts: 11
    Hi

    I had the same query when I first did it. You have to keep the fixed cost based on the original sales demand and don't change it based on the revised production plan.
    So calculations would be:

    X = Contribution (500) - Fixed costs (175) = 325
    Y = Contribution (960) - Fixed costs (300) = 660
    Z = Contribution (1080) - Fixed costs (280) = 800
    Total = 1785

    Hope this makes sense :)

    Amanda
  • Spinka123
    Spinka123 Registered Posts: 3
    Thank you Amanda! You are a star :)
    amandagarratt
Privacy Policy