Question

. The costs per unit of three products X, Y and Z are given below:
Products X Y Z
Direct Material (Rs.)
Direct Labour (Rs.)
Variable Overheads (Rs.)
Fixed Expenses (Rs.) 20
12
8
6 16
14
10
6 18
12
6
4
46 46 40
Profit 18 14 12
Selling Price (Rs.) 64 60 52
No. of Units Produced 10,000 5,000 8,000
Production arrangements are such that if one product is given up the production of the others can be raised by 50%. The directors propose that product Z should be given up because the contribution from the product is the lowest. Present suitable analysis of the data indicating whether the proposal should be accepted.

Answer 1

Answer:

rhr

Explanation:

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