| Profit Maximisation - Exercise 3.25 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | SOLUTION |
|---|---|---|---|---|
| (a) | Victoria | Albert | Total | |
| Units demanded | 4000 | 3000 | ||
| Labour hours per unit | 1.5 | 2 | ||
| Total labour hours required | 6000 | 6000 | 12000 | |
| (b) | Selling price | 300 | 400 | |
| Less Variable costs | 120 | 200 | ||
| Contribution per product | 180 | 200 | ||
| (c) | Contribution per product | 180 | 200 | |
| Labour hours per unit | 1.5 | 2 | ||
| Contribution per labour hour | 120 | 100 | ||
| (d) | Order of priority | first | Victoria | |
| second | Albert | |||
| (e) | Labour hours available for production | 6000 | 5000 | 11000 |
| (f) | Labour hours available | 6000 | 5000 | |
| Labour hours per unit | 1.5 | 2 | ||
| 4000 | 2500 | |||
| units | units |