Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or individually tea, coffee and cardamom.

A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or individually tea, coffee and cardamom. The yield per hectare of the different crops and their selling prices per kg. are as follows: Tea 2,000kgs @ Rs.200; Coffee 500kgs @ Rs.400; and Cardamom 100kgs @ Rs.2,500. The relevant cost data are as under: a) Variable cost per unit: Labour charges Tea @ Rs.80 Coffee @ Rs.200 Cardamom @ Rs.1,200 Packing Material - Tea @ Rs.20 Coffee @ Rs.20 Cardamom @ Rs.100 Other costs - Tea @ Rs.40 Coffee @ Rs.10 Cardamom @ Rs.200 b) Fixed Cost per annum (Rs.) Cultivation & Growing Cost 100,00,000 Administrative Cost 20,00,000 Land Revenue 5,00,000 Repairs & Maintenance 25,00,000 Other Costs 30,00,000 The policy of the company is to produce and sell all the three kinds of products and the maximum and minimum area to be cultivated per product is as follows: for Tea - hectares 160 (max) & 120 (min); for Coffee - hectares 50 (max) & 30 (min); ; and for Cardamom - hectares 30 (max) & 10 (min). Calculate the most profitable product mix and the maximum profit which can be achieved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Managing Business Information Preliminary Edition Volume I

Authors: Thomas L. Albright , Robert W. Ingram

1st Edition

0324061625, 978-0324061628

More Books

Students also viewed these Accounting questions

Question

Assess the requirements for strategic LMD

Answered: 1 week ago

Question

How can e-learning benefit organizations and individuals?

Answered: 1 week ago