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13- LUC Manufacturers produces and markets two types of products - Potato chips. SAS CHIPS and BAB CHIPS The total production capacity of the company
13- LUC Manufacturers produces and markets two types of products - Potato chips. SAS CHIPS and BAB CHIPS The total production capacity of the company is 8,000 units. The company instead of giving importance to both the products, seeks your opinion on which product should be produced more so that company get the highest revenue. The options are: Option : 1) 5000 units of SAS CHIPS and 3500 units of BAB CHIPS Option : 2) 3500 units of SAS CHIPS and 5000 units of BAB CHIPS Other information : Product SAS CHIPS BAB CHIPS Selling price RO 15 15 per unit Variable cost RO 7 RO 8 per unit Total Fixed Cost of the company 17,000 NOTICE= To solve this you have to find the total cost and then subtract the Total Selling form total costs to get the revenue
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