The following information is provided concerning the two products:
Standard Deluxe
Estimate...
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Business, 03.05.2021 14:00 2020IRodriguez385
The following information is provided concerning the two products:
Standard Deluxe
Estimated demand(beds) 315 135
Selling price per bed (K) 2,240 3,140
Variable costs per bed (K) 1,260 1,740
Fixed costs per bed (K) 800 1,400
Machine hours per bed 16 28
Direct labour hours per bed 12 14
Fixed costs are absorbed into unit costs at a rate per machine hour based on full capacity.
Required:
(a) Calculate the profit maximizing production plan and the corresponding optimum profit.
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Answers: 1
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