The following particulars are extracted from the record of a company. Product A Product B ( Per unit) ( Per unit) Selling price (Rs.) Consumption of raw materials (Kg) Direct Wages Cost (Rs.) Direct...


The following particulars are extracted from the record of a company.<br>Product A<br>Product B<br>( Per unit)<br>( Per unit)<br>Selling price (Rs.)<br>Consumption of raw materials (Kg)<br>Direct Wages Cost (Rs.)<br>Direct Expenses(Rs.)<br>100<br>120<br>2<br>3<br>15<br>10<br>5<br>6.<br>Overhead Expenses<br>Fixed (Rs.)<br>Variable (Rs,)<br>10<br>15<br>20<br>Raw material cost per Kg is Rs. 5/=. Assume raw materials as the limiting factor,<br>availability of which is 10,000 Kg per month. If maximum sales potential of each<br>product is 3,500 units per month, find out the product mix which will maximize the<br>company profit. Also, determine the profit that will be earned at the above product<br>mix.<br>

Extracted text: The following particulars are extracted from the record of a company. Product A Product B ( Per unit) ( Per unit) Selling price (Rs.) Consumption of raw materials (Kg) Direct Wages Cost (Rs.) Direct Expenses(Rs.) 100 120 2 3 15 10 5 6. Overhead Expenses Fixed (Rs.) Variable (Rs,) 10 15 20 Raw material cost per Kg is Rs. 5/=. Assume raw materials as the limiting factor, availability of which is 10,000 Kg per month. If maximum sales potential of each product is 3,500 units per month, find out the product mix which will maximize the company profit. Also, determine the profit that will be earned at the above product mix.

Jun 05, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here