Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hca ltd company makes a breadcrumb maker, the hans

HCA Ltd company makes a breadcrumb maker, the Hansel which has a contribution of 12...

60.1K

Verified Solution

Question

Accounting

image

HCA Ltd company makes a breadcrumb maker, the Hansel which has a contribution of 12 per unit. They currently sell 1,200 units per month. The Hansel uses 5 labour hours per unit and HCA has 8,000 labour hours available. The product manager has proposed that there is a market available for a complementary product, an oven cleaner called the "Gretel estimating that there would be a standalone market for Gretels of 400 units per month, and a new market for a "Hansel & Gretel set, comprising one of each, of 200 sets a month over and above existing demand for the individual products. The Hansel & Gretel set is expected to add 20 to the current price of a Hansel only. The Gretel is expected to sell for 26 individually and can be bought in externally for 22, but the manager says the company could also produce the Gretel in house for 15 of variable cost using 4 labour hours per Gretel. Using the optimal solution of Hansels, Gretels and Sets, how much additional contribution can be earned per month by extending the range to include Gretels and Sets? O 19,400 19,556 O 19,600 O 22,720

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students