Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 7.00

most profitable product mix

From the following particulars, find the most profitable product mix and prepare a statement of profitability of that product mix:

 

Product A

Product B

Product C

Units Budgeted to be Produced and Sold

1,800

3,000

1,200

Selling Price per unit (Rs.)

60

55

50

Direct Material Required per unit (kg)

5

3

4

Direct Labour per unit (hrs)

4

3

2

Variable Overheads (Rs.)

7

13

8

Fixed Overheads (Rs.)

10

10

10

Cost of Direct Material per kg (Rs.)

4

4

4

Direct Labour hour rate (Rs.)

2

2

2

Maximum Possible units of Sale

4,000

5,000

1,500

All the three products are produced from the same direct material using the same type of machines and labour. Direct labour which is the key factor is limited to 18,600 hours.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 08:07 PM My Price 7.00

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