XY Ltd is manufacturing three household products A, B and C and selling them in a competitive…


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XY Ltd is manufacturing three household products A, B and C and selling them in a competitive… 1 answer below » 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: View complete question » 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 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: Raw materials available will be only 12,100 kg. Direct labour hours available will be only 5,000 hrs. It may be possible to increase the sales of any one product by 25% without any additional Fixed Costs, but by spending Rs. 20,000 on advertisement. There will be no shortage of materials or labour. Suggest the best production plan in each case and the resultant profit that the company would earn according to your suggestion. View less » Jun 10 2014 05:41 PM

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