During the year 2000, a manufacturing company has produced and sold three products: P: 10,000 units;

Q: 7,000 units; and R: 5,000 units. The following further information is available:

The list prices of the products are subject to a uniform trade discount of 10%.
Due to shortage of labour, the available working hours for the next year are estimated to be only 90,000 hours. Suggest a suitable sales mix for the next year 2010:

(a) When there is enough demand for all the products.

(b) When the potential demand is 9,000 units for P, 5,000 units for Q and 6,000 units for R.

Transcribed Image Text:

Marginal cost (Rs.) Product Per Unit Product P Q Product R 20 36 32 Time taken (Hours) 5 6 5 List price (Rs.) 40 60 80 Fixed cost Rs. 1,75,000 (total).