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Hi all,
It’s late in the day I know but I’m stuck on the following question:
A Company Makes two products x and y for which the following details are available
x y
Selling price 50 32
Material 10 6
Direct Labour 20 15
Assembly time 20 mins 15 mins
Maximum demand 1500 units 1000 unitsTotal assembly time is limited to 600 hours
Using throughput accounting, how many units of y should be produced?
Would really appreciate any help
Thank You
Aaron
X: S.P $50 less Mat. $10 = $40 Throughtput p.u / 20mins = $2 return per factory hr
Y: S.P $32 less Mat. $6 = $26 Throughput p.u / 15mins = $1.73 return per factory hr
since x gives higher return we produce x first.
Available Assembly Time = 600hrs x 60mins = 36000 mins
X: 1500u * 20mins = 30000 mins
Y: 400u * 15mins = 6000 mins (remaining time)Sasha: although your final answer is correct (and that is all the matters here). If you were asked in a different question for the throughput per hour, then what you have calculated is throughput per minute. The throughput per hour is 60 times the figures that you have 🙂
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