HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product. Product ABCSelling price per unit$50$54$84Variable costs per unit$10$12$20Labour hours234Maximum demand40,00020,00030,000HydroPlus is facing a shortage of skilled labour and wishes to maximise the profitability of the company. Assuming all relevant information is provided, in what order should HydoPlus manufacture its products to maximise profit in the current year?Question 47 options: C then A A then C A, C then B None of the given answers

Working :- Particulas A $ B $ C $ Total $ Sales Price per unit [a] 50 54 84 Less…

Answered: HydroPlus manufactures three products…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product.

	Product
	A	B	C
Selling price per unit	$50	$54	$84
Variable costs per unit	$10	$12	$20
Labour hours	2	3	4
Maximum demand	40,000	20,000	30,000

HydroPlus is facing a shortage of skilled labour and wishes to maximise the profitability of the company. Assuming all relevant information is provided, in what order should HydoPlus manufacture its products to maximise profit in the current year?

Question 47 options:

	C then A
	A then C
	A, C then B
	None of the given answers

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