AMA

AMA

Pa 83 Question 2: A company produces three products from an imported material. The cost struct per unit of the products is as under: Product Sales value 200 250 300 80 Qirect material e) 60 120 A 108 / Direct wages t 6 per hour Varlable overheads 60 30 60 54 Out of direct material 80% is of imported material@ 10 per kg Prepare a statement showing comparative profitability of the three products under following scenarios (10) Imported material is restricted in supply (H) Production capacity is limiting factor (I)When maximum sales potential of products X and Y are 1,000 units each and that of product Z is 500 units for specific requirement, availability of imported material is restricted to 10,000 kg per month; how the profit could be maximised