Someone Please Help! ECR Question
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Hi,<BR><BR>Need some help with Limited Factors.<BR><BR>Question from past paper.<BR>Limited Factor is 3000Hours to make the most profit of 3 products<BR><BR>Three Products are:<BR><BR>Product Name Exe Wye Zed<BR>Unit Contribution £17.50 £15.00 £12.00<BR>Labour Hours per unit 0.5 0.4 0.4<BR>Contribution per labour hr £35.00 £37.50 £30.00<BR><BR>I know from the answers that you need to make the following but cant work out how.<BR><BR>3000 Wye takes 1,200hrs<BR>2000 Exe takes 1,000hrs<BR>2000 Zed takes the remaining 800hrs<BR><BR>I think i missed this subject whilst i was on holiday.<BR><BR>Can anyone help? the books dont really make sense.<BR><BR>Cheers<BR>
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Someone Please Help! ECR Question
I'm having the same problem with the same question, I cant find any help in the books either.<BR><BR><BR>Good Luck0 -
Someone Please Help! ECR Question
give me a sec to wash up and ill give you answer ok0 -
Someone Please Help! ECR Question
Ive got the answers but I dont know how to get the answers. If that makes sense.<BR><BR><BR>I don't know if it's the same for Blondie18240 -
Someone Please Help! ECR Question
My Friends just got back to me with the answer.<BR><BR>Rank all products rank 1 product with highest contribtuition per unit and so on. On the previous page it says how many it can make of each product. You make the most of rank one product 3000 all of rank two product 2000 and then divide the time left (800) to 0.4 time to make product rank 3 and that should make 2000 of that product.<BR><BR>Hope this helps. This sort of question is in all three past papers.<BR><BR>Good luck for today0 -
Someone Please Help! ECR Question
You need to calculate the contribution of each produt to start of with, ie Sales less variable cost of sales (direct labour, materials, variable overheads and any variable selling cost)<BR><BR>Then you need to divide each product by the lenghth of time it takes to produce one unit, if exe produces 2000 units per month and takes up 1000 hours then it would be 1000/2000=0.50 hours per unit. Do this for each product.<BR><BR>Then you need to calculate the contribution per hour of the scare resource, so if exe has a contributuon of £17.50, you take 17.50/0.50 hours = £35.00 per direct labour hour. Once you have done that you can rank the items of which would have the highest contribution.<BR><BR>Ranking<BR>Exe = 2<BR>Wye =1<BR>Zed=3<BR><BR><BR>You then work out the number of units you could produce by maximising the profit<BR><BR>Wye = 3000 units at 0.40 hours =1,200<BR>Exe 2000 units at 0.50 hours = 1,000<BR>Zed = 2000 units at 0.40 hours = 800<BR><BR>Total avaiable hours of 3,000, Zed is a balancing figure so once you know what yo are left with after deducting the other two products and simply divide by the lenghth of time is takes to product one unit.<BR><BR>Good luck<BR><BR><BR>D0 -
Someone Please Help! ECR Question
ok as from the contribution per labour hour<BR>the most contibution is in the following order<BR>x 35<BR>y 37.5<BR>z 30<BR><BR>So in order to maximise profit you would make all available of Y as it gives you most contribution to profit, so the max we can make is 3000 units so make all of y will use 1200 labour hours<BR><BR>The next profitable s x, so try and maximise production of y, the max we can make is 2000 units using 1000 labour hours.<BR><BR>Having made max of Y (300 units ) using 1200 hours and max of X (2000) using 1000 labour hours we have used in total 2200 hours of the 3000 we are limited to.<BR><BR>So for Z we have only 800 hours left (3000-1200-1000)<BR><BR>So the most we can make of Z is 800/0.4 (0.4 = labour hours per unit) gives you 2000 units of Z.<BR><BR>Hope this makes sense.<BR>0 -
Someone Please Help! ECR Question
read my answer which is posted in the middle somewhere ok. i think its easy to follow.<BR> <BR><BR>Kully0