Product X can be produced either by plant A or Plant B. Plant A can produce 200 units of X per hour and Plant B can produce 300 units per hour. Contribution per unit from Plant A is ₹ 10 and Plant B is ₹ 8. If total mach

CS Executive · Corporate and Management Accounting · PYQS · December 2023
Product X can be produced either by plant A or Plant B. Plant A can produce 200 units of X per hour and Plant B can produce 300 units per hour. Contribution per unit from Plant A is ₹ 10 and Plant B is ₹ 8. If total machine hours available during the year is 4000, the plant to be used to earn a maximum profit is:
(A) Plant A
(B) Plant B
(C) Plant A and B (50: 50)
(D) Plant A or B

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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