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Which of the proposed project should the company accept

Assignment Help Cost Accounting
Reference no: EM132567455

AG is in the process of reviewing 10 proposals for new project, but the resources only available to work on new project for maximum 46200, hours during the year. The incremental profit and constrained resource required for the proposed project are listed below:

Proposed Project                Incremental Profit                     Amount of the Constrained Resource Required

Project 1                                7.700.000                                     8.800

Project 2                                5.500.000                                      11.000

Project 3                                  825.000                                         6.600

Project 4                                 4.950.000                                       6.600

Project 5                                    3.300.000                                   13.200

Project 6                                    2.750.000                                   4.400

Project 7                                       2.200.000                                2.200

Project 8                                         660.000                                4.400

Project 9                                           1.650.000                         4.400

Project 10                                             880.000                       4.400

total                                                    30.415.000                     66.000

Required:

Question a) Which of the proposed project should the company accept this year?

Question b) What would be the total incremental profit under your plan?

Question c) What is your opinion, why company's revenues and costs differ across customer?

Reference no: EM132567455

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