The Tippett Company manufactures two products, 12-07 and 19-01. Contribution margin per unit is determined as follows: Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units.
Direct labour is a scarce resource. 40,000 direct labour hours are available during the year. Product 12-07 requires 5 direct labour hours per unit while product 19-01 requires 2 labour hours per unit.
How many units of 12-07 and 19-01 should the Royer Company produce?

Question

The Tippett Company manufactures two products, 12-07 and 19-01. Contribution margin per unit is determined as follows:  Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units.
Direct labour is a scarce resource. 40,000 direct labour hours are available during the year. Product 12-07 requires 5 direct labour hours per unit while product 19-01 requires 2 labour hours per unit.
How many units of 12-07 and 19-01 should the Royer Company produce?

Quizplus · Accepted Answer

The Answer of The Tippett Company manufactures two products, 12-07 and 19-01. Contribution margin per unit is determined as follows:  Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units.
Direct labour is a scarce resource. 40,000 direct labour hours are available during the year. Product 12-07 requires 5 direct labour hours per unit while product 19-01 requires 2 labour hours per unit.
How many units of 12-07 and 19-01 should the Royer Company produce?

The Tippett Company Manufactures Two Products, 12-07 and 19-01