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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Units produced
A firm manufactures 2 products, product A and product Z. The demand for product A is 300 units and 200 units off product Z are demanded. Both the products pass through a machine and 75 machine hours are available. The selling price for product A is $ 45 and the variable cost of production is $ 20. The cost of production for product Z is $ 30 and its selling price is $ 75. Product A needs 8 minutes processing time while product Z requires 15 minutes processing time.
How many units of product A and product Z must be produced in order to make the optimal profits?
I don’t know where on earth you are finding this question, because it is not in the syllabus for Paper MA !!