V. We are producing and selling 2 different types of goods coded as A and B. Production instruments are similar and may be used in the production of both. Market information of the period are given below. Compute the sale mix in order to maximize the periodical profit. (DMH = Direct Machinery Hours) Unit Sale Price PRODUCT A 30 Unit Variable Costs 18 Time Span for Production of 1 Unit 3 DMH Maximum Demand in Period 100.000 Pieces Periodical Fixed Costs Periodical Capacity PRODUCT B 20 12 1 DMH 350.000$ 150.000 DMH 100.000 Pieces

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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V.
We are producing and selling 2 different types of goods coded as A and B. Production
instruments are similar and may be used in the production of both. Market information of
the period are given below. Compute the sale mix in order to maximize the periodical
profit. (DMH = Direct Machinery Hours)
Unit Sale Price
PRODUCT A
30
Unit Variable Costs
18
Time Span for Production of 1 Unit
3 DMH
Maximum Demand in Period
100.000 Pieces
Periodical Fixed Costs
Periodical Capacity
PRODUCT B
20
12
1 DMH
350.000$
150.000 DMH
100.000 Pieces
Transcribed Image Text:V. We are producing and selling 2 different types of goods coded as A and B. Production instruments are similar and may be used in the production of both. Market information of the period are given below. Compute the sale mix in order to maximize the periodical profit. (DMH = Direct Machinery Hours) Unit Sale Price PRODUCT A 30 Unit Variable Costs 18 Time Span for Production of 1 Unit 3 DMH Maximum Demand in Period 100.000 Pieces Periodical Fixed Costs Periodical Capacity PRODUCT B 20 12 1 DMH 350.000$ 150.000 DMH 100.000 Pieces
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