(This illustration shows fixing of priorities for different products with reference to the key factor.) A company manufactures and markets three products X, Y and Z. All the three products are made using the same set of machines. Production is limited by machine capacity. From the following data, indicate priorities for products X, Y and Z with a view to maximizing profits
|
Products |
|||
|
X |
|||
|
Raw material cost per unit (Rs) |
11.25 |
16.25 |
21.25 |
|
Direct labour cost per unit (Rs) |
2.50 |
2.50 |
2.50 |
|
Other variable costs per unit (Rs) |
1.50 |
2.25 |
3.55 |
|
Selling price per unit (Rs) |
25.00 |
30.00 |
35.00 |
|
Standard machine time required per unit in minutes |
39 |
20 |
28 |