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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Limiting Factor – Robber Question part (b)
The solution of the question highlights:
Note 2: If a production run cannot be stopped part way through, then the company
would only be able to make 66,400 and would have to buy 33,600, since production
takes place in batches of 400 units.
Can someone explain to me the working for this make 66,400 and buy 33,600?
Total labour hours = 100000 hrs
Make max keypads first
So using 50000 hours so it is 100,000 * 0.5 hr
= 50000 hours used
Make display screens with the rest of the 50000 hours
So 50000 / 0.75 hours will make 66.666 display screens
That divided by 400 works out at 166 batches of 400 which is 66,400 and they would have to buy in the rest 33600.
I hope that clarifies it