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The Engineering Manager in ABC Ltd is responsible for

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The Engineering Manager in ABC Ltd is responsible for

 

(b) The Engineering Manager in ABC Ltd is responsible for maximising the profit from three product lines X, Y and Z. He/she has been provided with the following information 85 120 Direct materials (E) Direct labour (hrs) Fabrication Assembly Finishing Selling price per unit (£) 100 4 2 3.75 550 210 3.5 2 3.5 480 220 3.75 1.5 625 Budgeted production (in units) 180 Additional information is also provided There are no closing stocks The maximum sales achievable for each product in the period is 230 units The labour rate for fabrication and finishing is £13.50/hr. The labour rate for assembly work is £12.00/hr The skilled labour required for the assembly process is in short supply although there is just enough to meet the current budgeted production Required (i) Prepare a statement showing the contribution from each product based on the budgeted production Calculate the contribution per unit of limiting factor Prepare a statement showing the maximum total contribution that can (6 marks) (ii) (2 marks) (iii) be obtained. Explain your rationale (6 marks)

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The Engineering Manager in ABC Ltd is responsible for

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The Engineering Manager in ABC Ltd is responsible for

 

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