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

Costs and cost behaviour — practice question

A company manufactures three products, and the details are shown below. Unit selling price: product X $40$, product Y $48$, product Z $72$. Direct material used per unit: product X $18$, product Y $24$, product Z $30$. Direct labour per unit: product X $10$, product Y $6$, product Z $18$. The same material is used in producing all three products, and it costs $2.00$ per kilo. There is a shortage of material. In what sequence should the products be produced in order to obtain maximum profit?

  • AX, Y, Z
  • BY, Z, X
  • CZ, X, Y
  • DZ, Y, X

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