# Osbourne practice exam task 8 help

jodyewhite
Posts:

**35**AAT Student
Hi All

I am struggling to remember how to calculate the optimal production units, I have enclosed a copy of the question.

Many Thanks

I am struggling to remember how to calculate the optimal production units, I have enclosed a copy of the question.

Many Thanks

## Comments

11RegisteredIn this one you need to calculate contribution per limiting factor( find out whether materials or labour hours are limited) and then rank contribution per limiting factor. Optimal production plan would be sales demand for product with highest contribution per limiting factor and calculate how many can be produced with left resources.

Let me know if you need help with calculations.

35AAT StudentI can see how the materials, labour , contribution and limiting factor are worked out. How do they come to the answer of 10,000 units for each product, as the 50,000 kg is limited to 25,000 units.

Many Thanks.

11RegisteredBecause we have 50000 kg for both products only 30000 kg are left for Field. One unit of Field product requires 3 kg of material, therefore, we can only produce 10000 units (30000/3).

I hope it helps.

35AAT StudentJO

11RegisteredGood luck with your exam.