Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 22 Jul 2017 My Price 7.00

European producer of automobiles

Rhine Autos is a major European producer of automobiles. A department within one of its divisions supplies compo­nent parts to firms operating within the automobile indus­try. The following information is provided relating to the anticipated demand and the productive capacity for the next quarter in respect of three components that are manufactured within the department:

 

Component X

Component Y

Component Z

Contribution per unit of output

£12

£10

£6

Machine hours required per unit of output

6 hours

2 hours

1 hour

Estimated sales demand

2 000 units

2000 units

2000 units

Required machine hours for the quarter

12 000 hours

4000 hours

2000 hours

Because of the breakdown of one of its special purpose machines capacity is limited to 12 000 machine hours for the period, and this is insufficient to meet total sales demand. You have been asked to advise on the mix of products that should be produced during the period.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 07:07 PM My Price 7.00

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