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Corrie 18 mins
Corrie produces three products, X, Y and Z. The capacity of Corrie’s plant is restricted by process alpha.
Process alpha is expected to be operational for eight hours per day and can produce 1,200 units of X per hour,
1,500 units of Y per hour, and 600 units of Z per hour.
Selling prices and material costs for each product are as follows.
Conversion costs are $720,000 per day.
1.Calculate the profit per day if daily output achieved is 6,000 units of X, 4,500 units of Y and 1,200 units of Z.
$___________.
2.Determine the efficiency of the bottleneck process given the output achieved is 6,000 units of X, 4,500 units
of Y and 1,200 units of Z.
$___________.
