Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP Practice Kit – Mock 3, Q26 & Q29
- This topic has 5 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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- June 2, 2018 at 7:59 am #455411
Hi Mr. John,
I am having a difficulty in arriving at the correct answers to Q26 & Q29. I know I am missing something but not able to figure out.
Would be grateful if you guide me on the steps to be followed for both Qs to arrive at the answers.
Many thanks in advance.
June 2, 2018 at 9:24 am #455449For Q26,
To meet maximum demand, they need to produce 4 batches of brownies, 3 batches of muffins, and 5 batches of cupcakes. (It is 4 batches of brownies because they have to produce in batches of 40 and so for 140 they need 4 batches).The total time needed to produce maximum demand is as follows:
Weighing: (4 x 15) + (3 x 15) + (5 x 20) = 205 minutes
Mixing: (4 x 20) + (3 x 16) + (5 x 12) = 188 minutes
Baking: (4 x 120) + (3 x 110) + (5 x 120) = 1410 minutesThe time available (per the question) is:
Weighing: 240 minutes
Mixing: 180 minutes
Baking: 1440 minutesSo it is only mixing where the time available is not enough, and so mixing is the bottleneck process.
June 2, 2018 at 9:32 am #455453For Q29, it is baking that is the bottleneck resource (there is unlimited capacity for weighing and mixing).
At present there are 3 ovens and total time of 1,440 minutes, so 1 more over will give them 1,440/3 = 480 minutes.
Each batch of cupcakes takes 120 minutes, therefore they could make 480/120 = 4 extra batches. This will give them extra throughput return of:
4 batches x 20 units x ($2.00 – $0.25) = $140.The cost of the extra oven is $45. So an increase in profit of 140 – 45 = $95.
June 2, 2018 at 12:47 pm #455506Dear Mr. John,
Got it. Thank you.
June 2, 2018 at 12:48 pm #455507Dear Mr. John,
You explain so clearly. I must say that you are really gifted. God bless you.
June 2, 2018 at 5:10 pm #455560You are welcome, and thank you for your comment 🙂
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