XYZ Ltd. is manufacturing three products, A, B and C. All the products use the same raw material which is available to the extent of 61 000 kg only. The following information is available from the books and records of the company.
|
Particulars |
Product A |
Product B |
Product C |
|
Selling price per unit |
Rs.100 |
Rs.140 |
Rs.90 |
|
Variable cost per unit |
Rs.75 |
Rs.110 |
Rs.65 |
|
Raw material requirement per unit [kg] |
5 |
8 |
6 |
|
Market demand units |
5000 |
3000 |
4000 |
Advise the company about the most profitable product mix and also compute the amount of profit resulting from such product mix if the fixed costs are Rs.1, 50,000