# BPP Q5 (exams in 2011 study text page 406) Bottlenecks

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This topic contains 5 replies, has 3 voices, and was last updated by  John Moffat 2 years, 10 months ago.

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• Gee
Participant

Hi John
Do you have access to the above text book?
If so, please can you advise on the answer to the maximum profit calculation in question 5.b(i)?
I understand the profit maximising mix is A 144,000 units and B 13,000 units. These figures (number of units) are then used to calculate the throughput return (I understand). Why then does the calucation not use these units to calculate the variable cost. It uses the original estimate of sales / production A 120,000 units and B 45,000????
I think my brain is tired now!
Hope you can help.

Gee
Participant

John please note, the above should say “Why does the calculation not use these units to calculate the variable OVERHEAD cost”

acca13
Participant

That’s because if you re-read the (b) part of the requirement, it asks you to calculate the OH’s (that were variable in (a) part) based on estimated production/sales mix.

John Moffat
Keymaster

acca13 is correct. With throughput we are assuming that variable costs are fixed in the short-term (apart from materials) and therefore the total from part (a) stay the total.

Gee
Participant

thanks to you both.

John Moffat
Keymaster

You are welcome.

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