Question
Al-Ward Company provides a product to different customers in different sectors. Managing director evaluated the company production capacity and decided to provide the product to
Al-Ward Company provides a product to different customers in different sectors. Managing director evaluated the company production capacity and decided to provide the product to only any one country from where they can earn maximum profit. On the basis of below information, solve question (a) and (b) below. Consider variable cost is 3.50 R.O per unit and fixed cost is 70000 R.O. Clothes Manufacturing Food Sales Per Unit (currency in R.O) 15.00 22.00 5.00 Estimated Sales per year (units) 160,000 140, 000 410,000 Selling and distribution Overheads (Per Unit) 1.00 1.00 1.00 (a) In which sector company should sale its product and why. Calculate profit for all three sectors. (b) Provide suggestions and recommendations based on analysis.
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