Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 23.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the compan produce to maximize profit?

Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 23.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the compan produce to maximize profit?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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