During a year, a manufacturing company has produced and sold 3 products: Product A—20,000 units, Product B—14,000 units and Product C—10,000 units. The following further information is per unit also...

During a year, a manufacturing company has produced and sold 3 products: Product A—20,000 units, Product B—14,000 units and Product C—10,000 units. The following further information is per unit also available:

The list prices of the products are subject to a uniform trade discount of 10 per cent. Due to labour shortage, the available working hours for the next year are estimated to be only 90,000. Suggest a suitable sales-mix for the next year:

1. When there is enough demand for all the products.

2. When the potential demand is 18,000 units for product A, 10,000 units for product B and 12,000 units for product C.