2180 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