Question

From the following particula`, find the most profitable product mix and prepare a statement of profitability of that product mix.
A B C
Budgeted production and sales (units) 1,800 3,000 1,200
Selling price per unit (₹) 60 55 50
Direct materials (kg) 5 3 4
Direct labour (hou`) 4 3 2
Variable overheads (₹) 7 13 8
Fixed over heads (₹) 10 10 10
Cost of direct material per kg. 4 4 4
Direct labour rate per hour 2 2 2
Maximum possible units of sales (units) 4,000 5,000 1,500
All the three products are produced from the same direct material using the same type of machines and labour. Direct labour, which is the key factor, is limited to 18,600 hour.

Answer 1

Answer:

Explanation:

h c