0.

4. Pankaj Ltd., engaged in the manufacture of the two products 'A' and 'B' gives you the

following information:Selling Price per unit 60 100

Direct material per unit 20 25

Direct wages per unit @ 0.50 per hour 10 15

Variable overhead 100% of direct wages

Fixed overhead Rs. 10,000 per annum

Maximum capacity 1000 units

Show the contribution of each of the products A and B and recommend which of the

following sales mix should be adopted:

(a) 300 units of product A and 600 units of product B;

(b) 450 units of product A and 450 units of product B;

(c) 600 units of product A and 300 units of product B