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( a ) R & K Industries manufactures and sells packing machinery for which a particular type of material is needed. The machinery is of

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(a)R&K Industries manufactures and sells packing machinery for which a particular type
of material is needed. The machinery is of two types: Ordinary and Automatic, the cost
details of which are given below:
Total fixed overhead Rs 10,000
When the total availability of raw materials is 4,000kg and maximum sales potential of
each product is 1,000 units, find the product mix to yield maximum profit.
[10 marks]
(b) A company estimates its sales as Rs 45,000 for the first 6 months and Rs 50,000 during
the next six months in a financial year. Its estimated total costs are Rs 40,000 and
Rs 43,000 respectively for the two periods.
Required:
At what sales volume does this company break-even, assuming that the fixed costs are
equal for both the periods.
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