Raman & Co. produces two products X and Y. The technical labour needed to produce the products is in short supply. The following data is available for the year ending on 31 March 2000
|
Product X per unit (Rs) |
Product Y per unit (Rs) |
|
|
Material |
40 |
60 |
|
Labour (at Rs 2 per hour) |
20 |
12 |
|
Variable overheads (50% of labour) |
10 |
6 |
|
Fixed cost (at the current capacity level) |
15 |
30 |
|
Selling price |
140 |
180 |
|
Units sold |
900 |
2,000 |
Maximum labour hours available per month = 3,000 hours If maximum profit is to be attained using the remaining capacity by producing and selling the best product when labour time is limited (present production of either one of the products should be kept as the minimum output), determine the maximum profit.