Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A firm produces three products. The information below applies to next month’s budgeted output. Product X: contribution per unit $7$, contribution per kilo $3$, kilos of material needed $400$. Product Y: contribution per unit $6$, contribution per kilo $4$, kilos of material needed $600$. Product Z: contribution per unit $8$, contribution per kilo $6$, kilos of material needed $1000$. The firm has been told that only $1800$ kilos of material will be available for production next month. What is the greatest contribution the company can achieve?

  • A$9000
  • B$9600
  • C$13000
  • D$13200

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