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(5) 3. QLM company produces two products, A and B, the production costs of which are shown below: Particular A (Tk.) B (Tk.) Direct Materials

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(5) 3. QLM company produces two products, A and B, the production costs of which are shown below: Particular A (Tk.) B (Tk.) Direct Materials 10 10 Direct Labor 5 9 Variable Overhead 5 9 Fixed Overhead 5 9 Fixed overhead is absorbed on the basis of direct labor cost. The products pass through two processes, Y and Z, with associated labor cost of Tk. 10 per direct labor hour in each. The direct labor time taken associated with the two products for these processes is shown below: Process Product A Product B Y 10 mins 20 mins 39 mins 15 mins z Selling prices are set by the market. The current market price for product A is Tk. 65 and that for B, Tk. 52. At these prices, the market will absorb as many units of A and B as the company can produce. The ability of the company to produce A and B is limited by the capacity to process the products through Y and Z. The company operates a two-shift system, giving 16 working hours per day. Process Z is a single process line and 2 hours in each shift will be downtime. Process Y can process two units simultaneously, although this doubles the requirement for direct labor. Process Y can operate for the full 16 hours each day. Requirement: What production plan should the company follow in order to maximize profits

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