MDCL Sample assesemnt 2 Q8a
Spinka123
Registered Posts: 3
Does anyone know how to calculate the £1785, the maximum profit resulting from the optimal production plan ?
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Comments
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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
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Thank you Amanda! You are a star1
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