- 4 Marks
MA – L2 – Q1 – Throughput Accounting
Calculate the throughput accounting ratio for Starco Ltd, exporting pallets to Portugal with limited inspection hours.
Question
Starco Ltd exports cases to Portugal. Each pallet of cases costs GH¢2,000 in material costs and is sold for GH¢3,000. Production and sales are limited by a shortage of highly trained quality control inspectors. Only 200 inspection hours are available per week. Every pallet is inspected, and an inspection takes 30 minutes.
Other factory costs are GH¢300,000 per week.
Required:
Calculate the throughput accounting ratio.
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