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A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2017 · Q251 Mark

A company manufactures three products. The following information is obtained in respect of next month's budgeted production. For product X: contribution per unit $7, contribution per kilo $3, kilos of material required for production 400. For product Y: contribution per unit $6, contribution per kilo $4, kilos of material required for production 600. For product Z: contribution per unit $8, contribution per kilo $6, kilos of material required for production 1000. The company has been advised that only 1800 kilos of material will be available for production next month. What is the maximum contribution the company can earn?

A$9000
B$9600
C$13000
D$13200

✓ Correct answer

A: $9000

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About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2017 Paper 1 Variant 2, question 25.

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