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%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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