W Incorporation produces three products, Product P, Product Q and Product R. Product Prequires 6 Labor hours per unit to be completed, Product B requires 8 labor hours per unit tobe completed and Product C requires 4 labor hours per unit to be completed. The company'slabor hours are limited to 60,000 hours. The information related to the three products are givenbelow:ParticularsProduct PProduct QProduct RSelling price per unitVariable cost per unitDemand (units)$600$800$200$350$600$150550048002000Calculate the maximum number of units that can be produced for Product P provided thecompany applies the policy of producing as per optimal utilization of the constrained resource.a. 4200 unitsb. 5500 unitsc. 3600 unitsd. 2140 units

Formula: Contribution= Sales-Variable Cost We can calculate Maximum production that can be achieved…

Answered: Calculate the maximum number of units…

Calculate the maximum number of units that can be produced for Product P provided the company applies the policy of producing as per optimal utilization of the constrained resource.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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