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

Costs and cost behaviour — practice question

A business manufactures and sells four products. When there are not enough labour hours to make all four products, which product should be made first?

  • ASelling price $\$10$, variable costs $\$15$, labour hours $1$
  • BSelling price $\$35$, variable costs $\$10$, labour hours $5$
  • CSelling price $\$50$, variable costs $\$30$, labour hours $2$
  • DSelling price $\$75$, variable costs $\$57$, labour hours $3$

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