Question 2 A company produces two products in three departments. Details are shown below regarding the time per unit required in each department, the available hours in each department and the contribution per unit of each product:   Resources Product X Product Y Available hours   hours per unit hours per unit   Department A 8 10 11,000 Department B 4 10 9,000 Department C 12 6 12,000 Contribution per unit $4 $8     There is unlimited demand for Product X, but demand for Product Y is limited to 600 units per annum.      Requirement  Determine, using a step-by-step approach, what the optimum production plan is.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 2

A company produces two products in three departments. Details are shown below regarding the time per unit required in each department, the available hours in each department and the contribution per unit of each product:

 

Resources

Product X

Product Y

Available hours

 

hours per unit

hours per unit

 

Department A

8

10

11,000

Department B

4

10

9,000

Department C

12

6

12,000

Contribution per unit

$4

$8

 

 

There is unlimited demand for Product X, but demand for Product Y is limited to 600 units per annum. 

 

 

Requirement 

Determine, using a step-by-step approach, what the optimum production plan is.

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