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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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