A firm produces three products X, Y and Z, and the figures for each unit are given below: Selling price: - X: $\$18$ - Y: $\$35$ - Z: $\$50$ Direct material costs: - X: $\$4$ - Y: $\$5$ - Z: $\$5$ Direct labour hours: - X: $0.5$ - Y: $2$ - Z: $2.5$ The direct labour rate is $\$8.00$ per hour. Direct labour hours are in short supply. In what sequence should the products be ranked so that the greatest profit is made from the labour hours available?
Accounting 9706 · AS & A Level · Costs and cost behaviour