Question

There are three types of products which Anu Ltd. is producing. Their production costs and selling
price per unit are as under :

x
Rs.
y
Rs.
z
Rs.
Materials 20 25 35
Wages 6 9 12
Variable Overheads 2 4 5
Fixed Overheads 5 9 10
Total Cost 33 47 62
Selling Price 45 65 75
Net Profit 12 18 13
Production in Units 5,000 3,000 6,000
Production Manager intend to stop the production of one product and guarantee the 50% increase in
the production of the rest of the two products. He wishes to stop the production of product x
because it appears to be the least profitable product.
(a) Do you agree with this proposal.
(b) If yes, suggest whether the production of x product should be stopped.​

Answer 1

Answer:

Sorry I don't this question answer