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Company 10 makes three products: A, B, C

Business Jan 17, 2022

Company 10 makes three products: A, B, C. It has different costs for them. For product A: Selling price is £60, Direct materials £16, Direct labour is £12, Variable overheads are £2 and fixed overheads are £11. For product B: Selling price is £50, Direct materials £12, Direct labour is £8, Variable overheads are £5 and fixed overheads are £10. For product C: Selling price is £70, Direct materials £18, Direct labour is £4, Variable overheads are £10 and fixed overheads are £15. The company uses direct materials which cost £4 per one meter. Company has limited amount of material and no opportunity to buy more. In what order should company produce each product in order to maximize its profit? A, B, C B, C, A I do not know C, B, A

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