Management Accounting: Limiting Factor when products have unlimited demand
Question: ABC PLC makes two products A and B, product A requires £10 worth of materials, 2.5 hours of labour and 2 hours of machine time while product B requires £12.5 worth of materials, 2.5 hours of labour and 1.6 hours of machine time, the company has £500 worth of materials, 160 of labour hours and 148 of machine hours, the demand for product A and B are unlimited what is the limiting factor?
do we assume and use a similar number of units for both products since demand is unlimited or is there some way to calculate it ? to find the shortfall of either labour or machine hours