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X Limited manufactures a product that requires 1.5 hours of machining.
Machine time is a bottleneck resource, due to the limited number of
machines available. There are 10 machines available, and each
machine can be used for up to 40 hours per week.
The product is sold for $85 per unit and the direct material cost per unit
is $42.50. Total factory costs are $8,000 each week.
(a) the return per factory hour
(b) the TPAR
There is no point in typing out a full question and expecting to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Everything needed to be able to answer this question is explained in my free lectures on throughput accounting. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.