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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
a& 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
When the total availability of raw materials is and maximum sales potential of
each product is units, find the product mix to yield maximum profit.
marks
b A company estimates its sales as Rs for the first months and Rs during
the next six months in a financial year. Its estimated total costs are Rs and
Rs respectively for the two periods.
Required:
At what sales volume does this company breakeven, assuming that the fixed costs are
equal for both the periods.
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