Last month you took over the position of Management Accountant at Boron Brothers Pty Ltd which makes toys for children at its factory located in…

Last month you took over the position of Management Accountant at Boron Brothers Pty Ltd which makes toys for children at its factory located in Logan. The documents relating to the next year budget show the following information in relation to three toys that Boron Brothers Pty Ltd plans to make and sell next year.
Direct materials per unit $12.00 $15.00 $18.00
Direct Labour per unit $9.00 $15.00 $20.00
Variable O/H per unit $11.80 $14.95 $24.85
Fixed O/H per unit $5 $7.50 $9.75
Fixed Marketing Costs per unit $1.50 $2.00 $2.75
Head Office allocated costs per unit $3.00 $3.50 $3.75
Selling Price per unit $40 $57 $78
Machine Hrs per unit 0.4hrs 0.7hrs 0.9hrs
Demand 12,000 units 12,000 units 6,000 units
The total machine hours available in the next year are limited to 12,000 hours due to major maintenance work that needs to be carried out every 5 years on some machines. The production manager has indicated that it is not possible to meet the total demand for the three toys due to this reduction in the available machine hours. The managing director has asked you to decide on the product mix for the next year to maximise the profits from the available machine hours.
Out of the information in the budget documents given above, state which information is NOT relevant to deciding the product mix to maximise the contribution to company profits (15 marks).
Using the relevant information given above, calculate the optimum product mix that would maximise the contribution to company profits (50 marks). Estimate the contribution to profits that would result under the product mix that you calculated (15 marks).

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10