The machine that is used to make two of Platensil

The machine that is used to make two of Platensil Co. products, Ork and Poon can only work on one product at a time. The two products are worked on in two departments by differing grades of labour. The labour requirements for the two products are as

follows:

There is currently a shortage of labour and the maximum times available each day in Departments 1 and 2 are 480 minutes and 840 minutes, respectively. The current selling prices and costs for the two products are shown below:

B                                                         

As part of the budget-setting process, Platensil Co needs to know the optimum output levels Assuming ALL output is sold.

1. Calculate the maximum number of each product that could be produced each day and identify the bottleneck resource.                                                            
2. Using traditional contribution analysis, calculate the ‘profit-maximising’ output each day, and the contribution at this level of output.                                                        
3. Using a throughput approach, calculate the ‘throughput-maximising’ output each day, and the ‘throughput contribution’ at this level of output.                                            

The company is currently developing a system of environmental costing.

4. Describe the key features of an environmental management system.                 
5. Explain the difference between internalised environmental costs and externalised environmental impacts and state two examples of each.