. XYZ ltd produces 5 different products from a single Raw Material. Raw Material is available in abundance at Rs.6 per kg. The Labour Rate is Rs.8 per hour for all products. The Plant capacity is 21,000 Labour hours for the Budgeted period. Production facilities can produce all the products. The factory Overhead Rate is Rs.8.00 per hour, comprising Rs.5.60 per hour as Fixed Overhead and Rs.2.40 per hour as Variable Overhead. The Selling Commission is 10% of the product price. Given the following information, you are to suggest a suitable sales mix, which will maximize the company’s profits. Determine the profits that will be earned at the selected sales mix. Product Market Demand Selling Price Labours hours required P.U Raw Materials required P.U A 4,000 UNITS Rs. 32.00 1.00 700 grams B 3,600 UNITS Rs. 30.00 0.80 500 grams C 4,500 UNITS Rs. 48.00 1.50 1,500 grams D 6,000 UNITS Rs. 36.00 1.10 1,300 grams E 5,000 UNITS Rs. 44.00 1.40 1,500 grams
. XYZ ltd produces 5 different products from a single Raw Material. Raw Material is available in abundance at Rs.6 per kg. The Labour Rate is Rs.8 per hour for all products. The Plant capacity is 21,000 Labour hours for the Budgeted period. Production facilities can produce all the products. The factory
Given the following information, you are to suggest a suitable sales mix, which will maximize the company’s profits. Determine the profits that will be earned at the selected sales mix.
Product Market Demand Selling Price Labours hours required P.U Raw Materials required P.U
A 4,000 UNITS Rs. 32.00 1.00 700 grams
B 3,600 UNITS Rs. 30.00 0.80 500 grams
C 4,500 UNITS Rs. 48.00 1.50 1,500 grams
D 6,000 UNITS Rs. 36.00 1.10 1,300 grams
E 5,000 UNITS Rs. 44.00 1.40 1,500 grams
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