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question on TP dec 2013 q2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › question on TP dec 2013 q2

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  • March 1, 2018 at 5:03 pm #439595
    nadiranks
    Member
    • Topics: 25
    • Replies: 59
    • ☆☆

    Hi Mr Moffat,

    Dec 2013 Q2 part b confuses me on calculating the optimum production plan, why did they use the hours for the answer to calculate max profit as opposed to the units produced?

    My answer I calculated it to be Large panels 1500 units x 5928.57 not 2100hrs x 5928.57 which is what the ans was in the answer section.

    I followed the calculations using OT lectures but i dont know why hours was used instead of hours.

    Thanks

    March 1, 2018 at 5:29 pm #439602
    nadiranks
    Member
    • Topics: 25
    • Replies: 59
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    sorry i mean hrs were used instead of units in the answer

    March 2, 2018 at 9:13 am #439653
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54814
    • ☆☆☆☆☆

    But 5928.57 is the return per hour, not the return per unit. So you have to multiply by hours.

    By all means multiply the units (1,500) by the return per unit (8,300), and you get the same answer (apart from a bit of rounding, but that is irrelevant).

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