Problem 3 (Product Mix) Data concerning four product lines are as follows: Product Line C P10 A Selling price per unit Variable cost per unit Hours required for each unit Market limit (unit) Total fixed cost Total hours available P30 25 5 hrs. None P25 10 10 hrs. None 4 hrs. 8,000 P100,000 96,000 hours P8 4 1 hr. 4,000 19nis Required: 1. Based on these data, choose the best product combination. 2. How would the answer change if there are no market limitations on any of the products? How much greater is the profit from this combination of products than the profit associated with the combination in (1)?
Problem 3 (Product Mix) Data concerning four product lines are as follows: Product Line C P10 A Selling price per unit Variable cost per unit Hours required for each unit Market limit (unit) Total fixed cost Total hours available P30 25 5 hrs. None P25 10 10 hrs. None 4 hrs. 8,000 P100,000 96,000 hours P8 4 1 hr. 4,000 19nis Required: 1. Based on these data, choose the best product combination. 2. How would the answer change if there are no market limitations on any of the products? How much greater is the profit from this combination of products than the profit associated with the combination in (1)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3 (Product Mix)
Data concerning four product lines are as follows:
Product Line
C
A
P10
P8
Selling price per unit
Variable cost per unit
Hours required for each unit
Market limit (unit)
Total fixed cost
P30
25
P25
10
10 hrs.
4
5 hrs.
4 hrs.
8,000
P100,000
96,000 hours
1 hr.
None
None
4,000
Total hours available
19nist
Required:
1. Based on these data, choose the best product combination.
2. How would the answer change if there are no market limitations on any
of the products? How much greater is the profit from this combination
of products than the profit associated with the combination in (1)?
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