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A) Suppose you are the production manager of ASHMITA Ltd. and you are producing a standard mix of 35,000 units. Details is as follows: A
A) Suppose you are the production manager of ASHMITA Ltd. and you are producing a standard mix of 35,000 units. Details is as follows: A B Unit Produced 15,000 10,000 10,000 Variable Cost (Rs) 44 66 72 Selling Price (rs) 62.5 75 105 He desires to change the mix as follows: Mix 1 Mix 2 Mix 3 Units Units Units 18,000 15,000 22,000 B 12,000 6,000 8,000 7,000 13,000 8,000 Totals Units 37,000 34,000 38,000 Total Fixed Cost is Rs. 7,00,000 Being a production-manager you are required to: (1) Prepare the Comparative profitability statement of 3 products. (2) Recommendation for most profitable product mix
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