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All three products use the same material which costs £25 per kilogram but there is not enough material to meet the demand for all three products. In what order should these three products be produced if the company wishes to maximise its profit?

All three products use the same material which costs £25 per kilogram but there is not enough material to meet the demand for all three products. In what order should these three products be produced if the company wishes to maximise its profit?

FINANCIAL ACCOUNTING
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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Moss Ltd makes three products, Bgh, Rbo and Zyq. Unit costs and revenues relating to the three products are as follows: Bgh Rbo Zyq Selling price 1,506 1,240 1,440 Direct materials 576 480 540 Direct labour 300 220 300 Variable overheads 240 180 180 Fixed overheads 324 216 316 Total costs 1,440 1,096 1,336 Profit per unit 66 144 104 All three products use the same material which costs £25 per kilogram but there is not enough material to meet the demand for all three products. In what order should these three products be produced if the company wishes to maximise its profit? Select one: O a. Best 2nd Best 3rd Best Zyq Bgh Rbo ob. Best 2nd Best 3rd Best Bgh Rbo Zyq Best 2nd Best 3rd Best Bgh Zyq Rbo od. Best 2nd Best 3rd Best Zyq Rbo Bgh
Transcribed Image Text:Moss Ltd makes three products, Bgh, Rbo and Zyq. Unit costs and revenues relating to the three products are as follows: Bgh Rbo Zyq Selling price 1,506 1,240 1,440 Direct materials 576 480 540 Direct labour 300 220 300 Variable overheads 240 180 180 Fixed overheads 324 216 316 Total costs 1,440 1,096 1,336 Profit per unit 66 144 104 All three products use the same material which costs £25 per kilogram but there is not enough material to meet the demand for all three products. In what order should these three products be produced if the company wishes to maximise its profit? Select one: O a. Best 2nd Best 3rd Best Zyq Bgh Rbo ob. Best 2nd Best 3rd Best Bgh Rbo Zyq Best 2nd Best 3rd Best Bgh Zyq Rbo od. Best 2nd Best 3rd Best Zyq Rbo Bgh
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