A manufacturing company decides which of three mutually exclusive products to make in its factory on the basis of maximising the company's throughput accounting ratio.Current data for the three products is shown in the following table:Product XProduct YProduct Z$20Selling price per unit$60$40Direct material cost per unit$40$10$16Machine hours per unit10202.5Total factory costs (excluding direct materials) are $150,000. The company cannot make enough of any of the products to satisfy external demand entirely as machine hours are restricted.Which of the following actions would improve the company's existing throughput accounting ratio?Increase the selling price of product Z by 10%Increase the selling price of product Y by 10%Reduce the material cost of product Z by 5%O Reduce the material cost of product Y by 5%

Throughput return ratio refers to the form of ratio which reflects the comparison between the actual…

decides which of three mutually exclusive products to make in its roducts is shown in the following table Product X Product Y Product Z $60 $40 $20 $40 $10 $16 10 20 2.5 direct materials) are $150,000. The company cannot make en s would improve the company's existing throughput ac f product Z by 10% product Y by 10% product Z by 5% roduct Y by 5%

decides which of three mutually exclusive products to make in its roducts is shown in the following table Product X Product Y Product Z $60 $40 $20 $40 $10 $16 10 20 2.5 direct materials) are $150,000. The company cannot make en s would improve the company's existing throughput ac f product Z by 10% product Y by 10% product Z by 5% roduct Y by 5%

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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