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 If products can be sold up-to their max demand. Recommend the best production plan to maximise the use of the limited resource and maximise profit.

Production Plan The usage of the production plan is to calculate the total cost which was incurred…

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

If products can be sold up-to their max demand. Recommend the best production plan to maximise the use of the limited resource and maximise profit.

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