Accounting Multiple Choice Question – 12 February 2023

The table contains information for the two products X & Y of Alex plc:

• contribution per unit – X £12 & Y £9
• machine hours required per unit – X 6 hours & Y 3 hours
• estimated sales demand – X 200 units & Y 200 units
• required machine hours – X 1,200 hours & Y 600 hours
• Factory machine capacity limited to – 1,200 hours

What is the maximum possible contribution?

Select ONE answer:

1. £2,100
2. £3,000
3. £3,300
4. £4,200

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 2

1. Not correct
2. Correct- £9 * 200 units of Y = £1,800 for 600 hours, and balance is 100 units of X at £12 per unit for £1,200
3. Not correct
4. Not correct

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