Advanced Management Accounting. Struggling to answer this question. Please help to solve this. Thank you
Sweetie | Cherry | Lovely | ||
Selling price | 220 | 340 | 440 | |
Less: Marginal cost | 84 | 104 | 148 | |
Contributin margin C | 136 | 236 | 292 | |
essence required E | 10 | 10 | 14 | ml |
Contribution per ml C/E | 13.6 | 23.6 | 20.9 | |
Profit ranking | 3 | 1 | 2 | |
Max demand | 9000 | 7000 | 6000 | |
Maximum( 200*1000)ml | 200000 | |||
Allocation- Production (in ml) | 46000 | 70000 | 84000 | |
(200000-70000-84000) | (7000*10) | (6000*14) | ||
Production | contribution margin per unit | Maximum profit | ||
Cherry | 7000 | units | 136 | 952000 |
Lovely | 6000 | 236 | 1416000 | |
Sweetie | 4600 | units | 292 | 1343200 |
3711200 | ||||
Total maximum profit | 3711200 |
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Advanced Management Accounting. Struggling to answer this question. Please help to solve this. Thank you QUESTION...
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Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...