Accounting Multiple Choice Question – 21 January 2021

A company makes three products for which the following details are given. 

product P £    product Q £   product R £

selling price per unit                  20                    24                 36

direct material per unit                9                    12                 15      

direct labour per unit                   5                      3                   9

The same material is used by all three products and it costs $3.00 per kilo.

There is a shortage of material. 

In which order of priority listed below should the products be made in order to achieve maximum profit from the available material? 

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Correct – CM R = £12, CM Q = £9, CM P = £6

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