Q.No.1
ABC Manufacturing Company gives you the following information:
Product A (Rs.)
10000
20
Particulars
Fixed Overhead
Direct Materials
Direct Labour @ Rs.1 Per
hour
Variable Overhead(100% of
Direct Labour
Selling Price
Product B (Rs.)
10000
25
15
10
60
100
You are required to present a statement showing the marginal cost of each product and
recommend which of the following sales mixes should be adopted:
a) 900 units of A and 600 units of B
b) 1800 units of A only
c) 1200 units of B only
I
d) 1200 units of A and 400 units of B
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Answer:
the cost of fuel in running a vehicle is proportional to the square of the speed and is rs. 45 per hour for a speed of 15 km per hour . other expenses amount rs. 500 per hour .Find the most economical speed for the vehicle and also the minimum cost for a distance of 100 km
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