A company makes three products, details of which are as follows Product P £ £ £ 8.00 18.00 22.00 6.50 12.00 15.00 0.50 4.50 4.00 1.00 1.50 3.00 Selling price Variable cost per unit Fixed cost per unit Profit per unit Hours used per unit Maximum sales QR 0.5 1.5 2 500 300 400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The company only has 1,200 hours available and cannot obtain any
more. What production plan would maximise its profits?
(a) 500 P, 100 Q and 400 R
(b) 300 Q and 375 R
(c) 400 Q and 300 R
(d) 50 P, 250 Q and 400 R
Transcribed Image Text:The company only has 1,200 hours available and cannot obtain any more. What production plan would maximise its profits? (a) 500 P, 100 Q and 400 R (b) 300 Q and 375 R (c) 400 Q and 300 R (d) 50 P, 250 Q and 400 R
11. A company makes three products, details of which are as follows:
Product
P
Q
£
£
8.00 18.00
6.50 12.00
0.50
1.00
Selling price
Variable cost per unit
unit
Fixed cost per
Profit per unit
Hours used per unit
Maximum sales
R
£
22.00
15.00
4.50 4.00
1.50
3.00
0.5 1.5
500 300
2
400
Transcribed Image Text:11. A company makes three products, details of which are as follows: Product P Q £ £ 8.00 18.00 6.50 12.00 0.50 1.00 Selling price Variable cost per unit unit Fixed cost per Profit per unit Hours used per unit Maximum sales R £ 22.00 15.00 4.50 4.00 1.50 3.00 0.5 1.5 500 300 2 400
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