Need help in sample assessment task 1.8 a)
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Paulasw1
Registered Posts: 23
hi, can someone help with this task, im just struggling to complete contribution per limiting factor £. and optimal production
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Hi, I am struggling to work out q 9 assesment 2
How do I do this?0 -
can someone help in 8 b) also, why is 0 in material and 22500 in labour ?0
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is the figure from 4.5 x 5000 = 22500 ?0
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Materials are limited to 55,000kg. Jackal needs 10,000kg (5,000u x 2kg) & Hyena needs 30,000kg (10,000u x 3kg)
As such, we have 15,000kg more than required to meet our maximum sales demand, thus no scarce resource and thus we wouldn't pay anything for more material as we don't require it.
Labour - We have 20,000hrs capacity but require 25,000 to meet demand. We know contribution for Hyena is £4.50/hr so if we pay any more than this then we aren't making any contribution and thus it is pointless. At least if we take the £4.50/hr hit on 5,000hrs we've already contributed £4.50 x 20,000hrs so the remaining 5,000hrs will just break even.
I think this is correct, someone please correct me if I'm wrong.0
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