Particulars Selling Price per pair Material cost (RO 0.25 per soap) Direct Labour (OMR 0.025 per hour) Machine Hours (OMR 0.35 per hour) Expected Demand for June (no of soaps) Direct Material Direct labour Machine Hours Baby soap (BS) OMR 1 to 2 0.50 (2 units) 0.050(2Hours) 0.140(4 MH) 5,000 Question 2 Required: Beauty soap (PS) OMR 1.5 to 2.5 0.75 (3 units) 0.10(4 hours) 53,250 units 54,000 Hours 45,000 Hours 0.35(1MH) 8,000 Company has got a special-order of 1000 soaps for each product from LuLu hypermarket who are their regular customers but at a discount price of OMR 0.250 for each product. This special order is not included in the above demand. Medicated soap (MS) OMR Hemas generally has sufficient resources to meet the demand but because of the limited supply from their regular supplier, the company has following resources available for the month of June. 2.5 to 3.5 1(4 units) 0.150(6 hours) 0.70 (2MH) 2,500 a) What do you understand by limiting factor, evaluate the concept of outsourcing when resources are limited? b) Calculate the optimum production Plan for Hemas company for the month of June, assuming that the special order of the regular customer will be supplied in full. c) What is the total contribution for the month of June?
Particulars Selling Price per pair Material cost (RO 0.25 per soap) Direct Labour (OMR 0.025 per hour) Machine Hours (OMR 0.35 per hour) Expected Demand for June (no of soaps) Direct Material Direct labour Machine Hours Baby soap (BS) OMR 1 to 2 0.50 (2 units) 0.050(2Hours) 0.140(4 MH) 5,000 Question 2 Required: Beauty soap (PS) OMR 1.5 to 2.5 0.75 (3 units) 0.10(4 hours) 53,250 units 54,000 Hours 45,000 Hours 0.35(1MH) 8,000 Company has got a special-order of 1000 soaps for each product from LuLu hypermarket who are their regular customers but at a discount price of OMR 0.250 for each product. This special order is not included in the above demand. Medicated soap (MS) OMR Hemas generally has sufficient resources to meet the demand but because of the limited supply from their regular supplier, the company has following resources available for the month of June. 2.5 to 3.5 1(4 units) 0.150(6 hours) 0.70 (2MH) 2,500 a) What do you understand by limiting factor, evaluate the concept of outsourcing when resources are limited? b) Calculate the optimum production Plan for Hemas company for the month of June, assuming that the special order of the regular customer will be supplied in full. c) What is the total contribution for the month of June?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Particulars
Selling Price per pair
Material cost (RO 0.25 per soap)
Direct Labour (OMR 0.025 per hour)
Machine Hours (OMR 0.35 per hour)
Expected Demand for June (no of soaps)
Direct Material
Direct labour
Machine Hours
Baby soap (BS)
OMR
1 to 2
0.50 (2 units)
0.050(2Hours)
0.140(4 MH)
5,000
Question 2
Required:
Beauty soap
(PS)
OMR
1.5 to 2.5
0.75 (3 units)
0.10(4 hours)
Company has got a special-order of 1000 soaps for each product from LuLu hypermarket
who are their regular customers but at a discount price of OMR 0.250 for each product.
This special order is not included in the above demand.
53,250 units
54,000 Hours
45,000 Hours
0.35(1MH)
8,000
Hemas generally has sufficient resources to meet the demand but because of the limited
supply from their regular supplier, the company has following resources available for the
month of June.
Medicated soap
(MS)
OMR
2.5 to 3.5
1(4 units)
0.150(6 hours)
0.70 (2MH)
2,500
a) What do you understand by limiting factor, evaluate the concept of
outsourcing when resources are limited?
b) Calculate the optimum production Plan for Hemas company for the month
of June, assuming that the special order of the regular customer will be
supplied in full.
c) What is the total contribution for the month of June?
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