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Limiting factor question

Forums › Ask CIMA Tutor Forums › Ask CIMA BA2 Tutor Forums › Limiting factor question

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by jalymohammed.
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  • May 24, 2017 at 2:49 pm #387849
    jalymohammed
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hello

    I am wondering if you might be able to help me with a limiting factor question that i’m having trouble with which the question is as follows

    X Limited makes 3 products of which the details are as follows:

    Product A Product B Product
    Selling price €25 €20 €15

    Machine hours per unit 10 12 7
    Materials 14kg 12kg 10kg
    Labour hour 1.2 hours 0.8 hours 0.4 hours

    material rate of €0.50 per kg
    Labour rate of €7.50 per hour

    Sales unit for the period are as follows

    Product A 4,000
    Product B 6,000
    Product C 6,000

    The supply of materials in the period are unlimited but machine hours are limited to 200,000 hours and direct labour are limited to 5,000 hours

    the requirement for this questions is to

    a) Identify the limiting the limiting factor
    b) Calculate the production plan to maximise the contribution for X limited

    I am seeming to be having difficulty with this question am wondering if you might be of any help with this limiting factor question

    is there anyone that can help with this question please

    Regards Mohammed Jaly

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