costings 29/11/04

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I placed alpha first, gamma then beta as the order for the machine hours for maximum profits. Did anyone else?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    sorry<BR><BR>I got Beta then gamma then Aplha from memory<BR><BR>but Im not very happy about it<BR><BR>so your prob right<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    Hi <BR><BR>I also got <BR><BR>Beta<BR>Gamma<BR>Alpha<BR><BR>because if you remember the next question said how they chose to just sell beta so it made sense to find out that they produced the most contribution.<BR><BR>Any others views on this??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    the machine hrs were the limiting factor .... if i remember right i put alpha gamma beta to maximise profits
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    yeh beta had the most contibution out of the 3 products but it had the least contirbution per machine hour and the machine hour was the limiting factor <BR><BR>the next couple of questions went on about produncing the beta product and you had to calculate the breakeven point. 1000 units of beta if i remeber correctly.<BR><BR>You then had to advise the director if it was wise to only produce beta .... i put because it had the leat contibution per machine hour and there were a limited ammount of machine hours in january plus you could only produce about 100 units of beta you wouldnt make the breakeven point and the company would make a loss
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    Yeah, I put the same as Mike. They wanted to know why they shoudlnt produce just Beta , the reason being youd never break even.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    I put alpha, gamma, beta. I put that Beta was the most expensive to make at something like £68 per unit before sale, and that the company could not make and sell a large enough amount of the product to be able to break even.<BR><BR>I don't like written answers. Numbers are much easier to check.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    yeh written answers are a pain ...... didnt like the PRAP simulation at all it was full of them
  • System
    System Posts: 100,534 🤖 Admin 🤖
    costings 29/11/04

    Hiya, <BR><BR>For the break-even I got £52,000 / £52 contribution per unit for Beta = 1000 units <BR> <BR><BR>We should make more the Beta range and then the Gamma range and then the Alpha range. <BR> <BR><BR>We should not adopt the policy of making just Beta, as the company would need to make and sell 1000 units of the Beta range, but the demand is only 200 units. Also, the other reason was because it may upset your current clients and therefore they might decide to buy all three of the products elsewhere, thus resulting in a loss of business for China Ltd. <BR> <BR><BR>For the unit contribution it was £27 for Alpha, £52 for Beta and £43 for Gamma (I think). <BR> <BR><BR>For the question were it asked if budgeted activity increases then what happens to the cost of overheads charged to an individual product. I put that if activity goes up the cost of overheads charged to one single unit is going to be less than if the activity was less, since you are spreading the cost over more hours. <BR> <BR><BR>Did anyone else get the same as me?

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