Arthur Ltd. manufacturers 3 products: Arrow Sword Dagger Selling price per unit 42 36 36...
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Arthur Ltd. manufacturers 3 products: Arrow Sword Dagger Selling price per unit 42 36 36 Variable costs per unit 30 18 16 Labour hours required per unit 2 6 5 Sales demand for product next month 20,000 10,000 16,000 Due to recruitment issues Arthur Ltd. has only 115,000 labour hours available next month. Section A continues on the next page 8 13.Which production plan will maximise profits? a. 16,000 units of product dagger; 17,500 units of product arrow and 0 units of product sword b. 20,000 units of product arrow; 15,000 units of product dagger and 0 units of product sword c. 10,000 units of product shield; 20,000 units of product arrow and 3,000 units of product dagger d. None of the above 14.What is the value of lost contribution caused by the shortage of labour hours? a. 180,000 b. 140,000 c. 200,000 d. 160,000
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