CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 88 Discussion

You are a management accounting working for a car manufacturer. The company is publicly listed and has been around for many years.

The company produces 2 products. Car 1 and Car 2. Car 1 sells for 20,000 and Car 2 for 27,000.

Car 1 can be upgraded post production to the 1ZC model for 5,000 and Car 2 to the 2ZC model for 3,500.

Post production upgrade the 1ZC sells for 25,500 and the 2ZCfor 30,000.

The company sources all of its supplies for the same supplier and has access to a large workforce. As a result there are no bottlenecks or limiting factors to production.

Based on the information above the company should...