Day: October 14, 2021

A company manufactures three products for which the following details (per unit) are available. 

     product X £    product Y £   product Z £

Contribution per unit                160                   175               190

Fixed Overhead per unit           125                   130               160      

Labour hours per unit               1                       1.25               0.75

The company is experiencing a shortage of labour.

In which order should the products be ranked to maximise profit?

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 3

• Not correct
• Not correct
• Correct
• Not correct

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