Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bellD_bell Selling Price £150£190 Variable Costs £110£120 Direct labour hours per unit 46HoursDirect labour hours available (per week)900Hours Maximum demand 100140 Fixed overheads (per week) £4,000 a). If products can be sold up-to their max demand. What will be the maximum profit?

When business has one particular resource in limited quantity, then contribution margin per limited…

Answered: Bluebell Ltd is a small company making…

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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Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited.

Information/data:		E_bell	D_bell
Selling Price			£150	£190
Variable Costs			£110	£120
Direct labour hours per unit		4	6	Hours
Direct labour hours available (per week)	900	Hours
Maximum demand		100	140
Fixed overheads (per week)		£4,000

a). If products can be sold up-to their max demand. What will be the maximum profit?

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