| Profit Maximisation - Exercise 3.28 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | SOLUTION |
|---|---|---|---|---|
| (a) | Super Plus | Sprint | Total | |
| Units demanded | 1200 | 2400 | ||
| Labour hours per unit | 5 | 4 | ||
| Total labour hours required | 6000 | 9600 | 15600 | |
| (b) | Selling price | 900 | 600 | |
| Less Variable costs | 450 | 270 | ||
| Contribution per product | 450 | 330 | ||
| (c) | Contribution per product | 450 | 330 | |
| Labour hours per unit | 5 | 4 | ||
| Contribution per labour hour | 90 | 82.5 | ||
| (d) | Order of priority | first | Super Plus | |
| second | Sprint | |||
| (e) | Labour hours available for production | 6000 | 9000 | 15000 |
| (f) | Labour hours available | 6000 | 9000 | |
| Labour hours per unit | 5 | 4 | ||
| 1200 | 2250 | |||
| units | units | |||
| (g) | Contribution per labour hour | 90 | 82.5 | |
| Labour hours | 6000 | 9000 | ||
| Total Contribution | 540000 | 742500 | 1282500 | |
| (h) | Less fixed assets | 550000 | ||
| Profit | 732500 |