QUESTION 4[LIMITING FACTORS UNDER CONSTRAINTS](30 marks) Zintambila SM Limited runs a small bakery...

60.1K

Verified Solution

Question

Accounting

QUESTION 4[LIMITING FACTORS UNDER CONSTRAINTS](30 marks)
Zintambila SM Limited runs a small bakery and manufactures and sells 4 different types of scones. The following information is available for the year ended 30 May 2024
\table[[,\table[[Buttermilk],[scones]],\table[[Pumpkin],[Scones]],\table[[Lemon],[Glaze],[scones]],\table[[Coconut],[Scones]]],[\table[[Expected monthly],[demand(units)]],60000,16000,32000,20000],[Selling price per unit,R 20,R 32,R 40,R 144],[\table[[Variable production cost],[per unit]],R 7.20,R 15.20,R 16.00,R 37.20],[\table[[Fixed production per],[unit (basedon normal],[production capacity)]],R 4.80,R 4.80,R 4.80,R 4.80],[Variable selling costs,R 4.00,R 4.80,R 4.80,R 8.00]]
Additional Information
A total of 690 direct labour hours are available to the company. The company can produce 400 buttermilk scones per labour hour, 320 pumpkin scones per labour hour, 320 lemon glaze scones per labour hour, and 40 coconut scones per labour hour.
Required
4(a) Determine the limiting factor in hours (5)
4(b) Calculate the contribution per limiting factor and rank the products in order of priority.(10)
4(c ) Calculate the total contribution under the selected order of priority in 4(b) above. (15)
image

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