ECR June 2005 Task 2.4

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podolibrno
podolibrno Registered Posts: 1 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
could anyone please answer my questions on ECR June 2005 Task 2.4

how can i rank products B and C and how to work out *machine hours allocated to B and C*

thank you very much for your help.

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  • Richard
    Richard Registered Posts: 373 Dedicated contributor 🦉
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    You rank the product that gives the greater contribution first, which in this question is product B.

    Therefore, priority is given to this for machine hours - a previous question gives the information that 1,000,000 machine hours are required to produce the full budgeted amount.

    Product C requires 3,750,000 hours for full production, but as the total machine hours are limited to 3,500,000 you can only allocate 2,500,000 (3,500,000 less 1,000,000 used for 'B') hours to producing C.

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