Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 12 a company producing products pie and si

Problem 12 A company producing products PIE and SIGMA using a single production process has...

70.2K

Verified Solution

Question

Accounting

image

Problem 12 A company producing products PIE and SIGMA using a single production process has the following cost data: PIE SIGMA Selling price per unit ($) 20 30 Variable cost per unit ($) 11 16 Machine hours required per unit of production (hrs) 1 2 Market limitation (units) 1 lakh 2.5 lakh Total machine hours available - $ 4 lakh Fixed xost per annum $26 lakh Considering the limiting factors of machine hours and market limitations, required to: (a) Indicate the best combination of products to give optimum contribution; (b) show the additional machinery requirement to be augmented on rental basis at an annual rent of $ 1.5 lakh per machine to provide additional capacity of 30,000 hours per machine; (C) change in number of machines to be rented if the annual rental charges reduce to $ 1,25,000 per machine

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