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

Costs and cost behaviour — practice question

A company produces and sells three products: X, Y and Z. A maximum of 3000 hours of labour time will be available in January. The information below is given for the three products: Contribution per unit: X $50, Y $60, Z $70 Maximum demand per month (units): X 1000, Y 500, Z 800 Labour time per unit: X 1 hour, Y $1.5$ hours, Z 2 hours Which sales mix of products will be optimal in January?

  • AX 825, Y 500, Z 800
  • BX 1000, Y 325, Z 800
  • CX 1000, Y 500, Z 625
  • DX 1000, Y 500, Z 800

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