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CARA CO (MARCH – 2019)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › CARA CO (MARCH – 2019)

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by LMR1006.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 17, 2023 at 10:30 am #682949
    sagarm
    Participant
    • Topics: 12
    • Replies: 9
    • ☆

    SIR, i have to calculate maximum profit for month 3
    in question it has been solved by iso – contribution line method

    but for my practice i want to solve this by simultaneous equation method

    seabach & herdorf required 5kg and 7kg material = total material available 35000kg
    seabach & herdorf required 2hr and 3hr labour hr = total labour hr 24000
    seabach & herdorf required 3hr and 2hr machine hr = total machine hr 12000
    max demand for seebach = 4000unit and for herdorf = 3000 unit

    acc to graph given in question it is easily identifiable that s need 2000 unit and h need 3000 unit ( for max contribution)
    only two equation are constraints material and machine

    but acc to simultaneous method my solution is wrong if its possible can you show me the solution in this method.?

    thankyou

    April 18, 2023 at 11:30 am #683125
    LMR1006
    Keymaster
    • Topics: 0
    • Replies: 80
    • ☆☆

    If you move the iso cont line out……… 250S + 315H

    The simultaneous equations that you solve are:

    3S + 2H < 12000
    And H = 3000 (The maximum demand for H)

    Thus 12000 – (2* 3000) = 6000

    So S is 6000 / 3 = 2000

    S and H
    250 and 315 Cont
    2,000 and 3,000 Units
    Gives a total of
    500,000 and 945,000

    Total Cont = 1,445,000 – (FC) 300,000 = 1,145,000

  • Author
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