Section B - Case 1: AeroBlade Dynamics
AeroBlade Dynamics manufactures heavy wind turbine blades. They produce two models: Standard and Advanced. The factory operates a highly specialized molding machine which is the bottleneck resource. Total bottleneck hours available per month are 3,000 hours. Total factory costs (excluding direct materials) are $120,000 per month.
Data per unit:
Standard Blade: Selling Price = $200, Direct Material Cost = $80, Machine Hours = 2 hours.
Advanced Blade: Selling Price = $350, Direct Material Cost = $150, Machine Hours = 4 hours.
Calculate the Return per Factory Hour for the Advanced Blade. (Enter the number only)
ACCA · Question 19 · Specialist Cost and Management Accounting Techniques
Section B - Case 1: AeroBlade Dynamics
AeroBlade Dynamics wants to improve the Throughput Accounting Ratio (TPAR) of its products.
Which TWO of the following actions would directly increase the TPAR?
Answer options:
Reducing the time spent on the bottleneck machine per unit.
Increasing the total factory costs (operating expenses).
Negotiating a lower purchase price for direct materials.
Decreasing the selling price of the blades to boost volume.
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