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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
XY Ltd is manufacturing three household products A, B and C and selling them in a competitive market. Details of the current demand, selling price and cost structure are given as follows:
 |
A |
B |
C |
Expected Demand (units) |
10,000 |
12,000 |
20,000 |
Selling Price per unit (Rs.) |
20 |
16 |
10 |
Variable Cost per unit (Rs.): |
 |  |  |
Direct Materials (Rs. 10/kg) |
6 |
4 |
2 |
Direct Labour (Rs. 15/hr.) |
3 |
3 |
1.50 |
Variable Overheads |
2 |
1 |
1 |
Fixed Overheads per unit (Rs.) |
5 |
4 |
2 |
The company is frequently affected by an acute scarcity of raw material and high labour turnover. During the next period it is expected to have one of the following situations:
Suggest the best production plan in each case and the resultant profit that the company would earn according to your suggestion.f
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