The following particulars are extracted from the records of a company:
Comment on the profitability of each product when:
(i) Total sales potential in units is limited.
(ii) Total sales potential in value is limited.
(iii) Raw material is in short supply.
(iv) Production capacity (in terms of machine hours) is the limiting factor.
2. Assuming raw material as the key factor, the availability of which is 10,000 kgs., and the maximum sales potential of each product is 3,500 units, find out the product-mix which will yield the maximum profit.
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