Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 23.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the compan produce to maximize profit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Presented below is data of B Ltd for next year.
XYZ
Selling price ($) 3.0 2.0 4.0
Unit variable cost ($) 1.0 0.8 1.2
Standard labor hours 2.5 2 3.5
Maximum sales demand (units) 300 500 400
Total labor hours available for production in a month is 1000 hours.
Requirements:
1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit.
2. If the labor hours can be increased by 100 hours, how many units of product should the company
produce to maximize profit?
Transcribed Image Text:Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 2 3.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the company produce to maximize profit?
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