Calculate the throughput accounting ratio

Assignment Help Accounting Basics

Reference no: EM133007209

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.

b) Companies can minimise their profitability by adopting different types of pricing strategies. Explain in detail different types of pricing strategies available to companies.

Reference no: EM133007209

Questions Cloud

Primary source of job creation : Why are new ventures in Canada (and much of the world) the primary source of job creation and new product/service ideas? Share an example.

Solve gain or loss on disposal for genetic insights co : Solve gain or loss on disposal. Genetic Insights Co. purchases an asset for $18,625. This asset qualifies as a seven-year recovery asset.

What is the option portfolio delta : A hedge fund manager has 1 million nine month call options. The options are funded half by loans and half by equity. What is the option portfolio delta

Monitoring and evaluating workforce plan : When monitoring and evaluating workforce plan. How revisions to the approach will be implemented. Please help me describe it and Identify any changes in the int

Calculate the throughput accounting ratio : Calculate the throughput accounting ratio and Companies can minimise their profitability by adopting different types of pricing strategies

What style of employee relations culture : WTI is a leading supplier of state-of-the-art technologies for businesses both large and small. The recent pandemic has increased the reliance of many businesse

Examples of national or popular professional technology : What are examples of national or popular professional technology societies in which HR professionals can network to learn more about the industry?

Which columns of a worksheet would the adjusted balance : Which columns of a worksheet would the adjusted balance of Accumulated Depreciation appear? Adjusted Trial Balance Credit,Income Statement Credit.

Advantages of the two compensation contracts : Explain the disadvantages and advantages of the two compensation contracts - design his bonus based on the total number of wins during the playoffs

User Account

All Pages