The managing director of ABC Limited is setting the production plan for the next financial year. ABC has a shortage of skilled labour and wishes to maximise the profitability of the company. ABC manufactures three products X, Y and Z. There is 200 000 hours of skilled labour hours available in the year at a cost of $10 per hour. The following information relates to each product. Selling Price Material cost per 10 unit Labour hours per unit Maximum demand X A. Z then X B. X then Z C. X, Y and then Z D. Z, X and then Y E. X, Z and then Y 50 2 Y 54 12 3 Z 84 20 4 Assuming all relevant information is provided, in what order should ABC manufacture to maximize profit in the current year? Select one: 40000 20000 40000
The managing director of ABC Limited is setting the production plan for the next financial year. ABC has a shortage of skilled labour and wishes to maximise the profitability of the company. ABC manufactures three products X, Y and Z. There is 200 000 hours of skilled labour hours available in the year at a cost of $10 per hour. The following information relates to each product. Selling Price Material cost per 10 unit Labour hours per unit Maximum demand X A. Z then X B. X then Z C. X, Y and then Z D. Z, X and then Y E. X, Z and then Y 50 2 Y 54 12 3 Z 84 20 4 Assuming all relevant information is provided, in what order should ABC manufacture to maximize profit in the current year? Select one: 40000 20000 40000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The managing director of ABC Limited is setting the production plan for the next financial year. ABC has a shortage of
skilled labour and wishes to maximise the profitability of the company. ABC manufactures three products X, Y and Z. There
is 200 000 hours of skilled labour hours available in the year at a cost of $10 per hour. The following information relates to
each product.
Selling Price
Material cost per
unit
Labour hours
per unit
Maximum
demand
X
A.
Z then X
B.
X then Z
C.
X, Y and then Z
D.
Z, X and then Y
E.
X, Z and then Y
50
10
2
Y
54
12
3
co
Z
84
20
4
40000 20000 40000
Assuming all relevant information is provided, in what order should ABC manufacture to maximize profit in the current
year?
Select one:
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