Mathematics · Throughput Accounting
Seal Co manufactures a single type of school uniform. Fabric cutting is done by a fully automated cutting machine (Seal Co has two of these). Cutting is followed by sewing using four manually operated sewing machines handled by four skilled labourers. The details for a school uniform are: Selling price: $38.00 Contribution to sales ratio: 40% Percentage of the total variable cost represented by direct materials: 45% Cutting time: 0.1 hours Sewing time: 0.25 hours Operation details: 10 working hours a day for 30 days a month. Monthly output is 4,800 uniforms with monthly fixed overheads of $30,000. What is the Throughput Accounting Ratio closest to?
- 13.65
- 21.85
- 31.82
- 41.48✓
Correct answer
1.48
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