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

Costs and cost behaviour — practice question

These figures refer to the output of three products. Product details: - Product X: contribution per unit $160, fixed overhead per unit $125, labour hours per unit $1 - Product Y: contribution per unit $175, fixed overhead per unit $130, labour hours per unit $1.25 - Product Z: contribution per unit $190, fixed overhead per unit $160, labour hours per unit $0.75 The company is facing a shortage of labour. To maximise profit, in what order should the products be ranked?

  • A1: X, 2: Y, 3: Z
  • B1: Y, 2: X, 3: Z
  • C1: Z, 2: X, 3: Y
  • D1: Z, 2: Y, 3: X

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