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Question: ABC Limited is the manufacturer of mobile phone units which requires 4 hours of Machine Time to produce each unit. Machine Time has been identified as a bottle neck resource at the Company with only ten machines available for 12 hours per day, five days per week. The product has a selling price of £130 per unit, direct material costs of £50 per unit, labour costs of £40 per unit and factory overhead costs of £20 per unit. These costs are based on weekly production and sales of 150 units.
Required:
a) Calculate the throughput accounting ratio.
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