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Qn 148 bpp

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Qn 148 bpp

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • February 5, 2021 at 6:17 pm #609337
    nk16
    Participant
    • Topics: 71
    • Replies: 39
    • ☆☆

    I didn’t understand the Qn plz explain how to do it …I didn’t understand the solution

    February 6, 2021 at 10:30 am #609412
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54765
    • ☆☆☆☆☆

    The limiting factor is material M1, and we know that P4 used 0.75 sq meters and P6 uses 0.5 sq meters (because the cost is $20 per sq meter).

    Therefore the contribution per sq meter for P4 is 85/0.75 = $113.33, and for P6 is 95/0.5 = $190

    Therefore they should produce P6 first

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