Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z

Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

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Question

Merlot Manufacturing Ltd makes three different products, the details of which are as follows:
Product (code name)
167X
325Y
7422
Selling price per unit (£)
40
30
28
Variable cost per unit (£)
15
18
14
Weekly demand (units)
45
50
20
Skilled labour time per unit (hours)
3.
Skilled labour time is limited to 200 hours a week.
Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up
units of product 167X
units of product 325Y
units of product 742Z
Enter any number or expression in each of the edit fields.
26

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