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

Costs and cost behaviour — practice question

A business produces three kinds of products, and each one requires the same material. The information below is provided. Selling price: X $160$, Y $190$, Z $240$ Direct material: X $56$, Y $68$, Z $90$ Direct labour: X $35$, Y $32$, Z $50$ Variable overhead: X $28$, Y $34$, Z $45$ Contribution: X $41$, Y $56$, Z $55$ Direct material is scarce. What sequence should the products be made in to achieve maximum profit?

  • A$X \rightarrow Y \rightarrow Z$
  • B$Y \rightarrow X \rightarrow Z$
  • C$Y \rightarrow Z \rightarrow X$
  • D$Z \rightarrow Y \rightarrow X$

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