A-LevelAccountingDecision MakingFeb/Mar 2017Paper 1 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
The correct answer is A. This question tests the candidate's understanding of decision making within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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