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Units produced

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Units produced

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • December 11, 2020 at 9:37 am #599370
    mk78
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    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?

    December 11, 2020 at 1:36 pm #599435
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54790
    • ☆☆☆☆☆

    I don’t know where on earth you are finding this question, because it is not in the syllabus for Paper MA !!

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