ACCA · Question 21 · Limiting Factor Analysis
Section B - Case 2: BioNutri
BioNutri manufactures two specialized nutritional supplements: Alpha and Beta. Both products require processing on a specialized mixing machine. The machine is available for a maximum of 1,200 hours per month.
Product details:
Alpha: Selling price $50, Variable cost $30, Machine hours per unit: 2 hours. Maximum demand: 400 units.
Beta: Selling price $70, Variable cost $40, Machine hours per unit: 4 hours. Maximum demand: 300 units.
What is the contribution per limiting factor for Product Alpha?
Answer options:
$7.50 per hour
$10.00 per hour
$20.00 per hour
$25.00 per hour
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