2347 others answered this question
MC Question 11
A company manufactures three products using different amounts of the same grade of labour, which is in short supply. The following budgeted data relates to the products:
| Per unit: | P1 | P2 | P3 |
|---|---|---|---|
| $ | $ | $ | |
| Selling price | 120 | 140 | 95 |
| Materials ($2 per kg) | (40) | (32) | (22) |
| Labour ($10 per hour) | (10) | (20) | (11) |
| Variable overheads | (20) | (28) | (24) |
| Fixed overheads | (6) | (9) | (12) |
| Profit per unit | 44 | 51 | 26 |
What order should the products be manufactured in to ensure that profit is maximised?
| P1 | P2 | P3 | |
|---|---|---|---|
| A. | 2nd | 1st | 3rd |
| B. | 2nd | 3rd | 1st |
| C. | 1st | 3rd | 2nd |
| D. | 1st | 2nd | 3rd |