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A Company manufactures three products. The data is given as under. Product A 1800 60 Product B 3000 55 Product C 1200 50 5 3 4 4 4 4 Particulars Budgeted Units Selling Price per Unit (Rs.) Direct Material per Unit (kg) Cost of Direct Material per kg Direct Labour per unit (hrs.) Direct Labour hour rate (Rs.) Variable Overheads(Rs.) Maximum possible units of sale Fixed Overhead (Rs.) 4 2 2 2 7 3 2 13 5000 60000 8 4000 1500 You are required to A.Present a statement of budgeted profit. (5 Marks) B. Set optimal product mix and determine the profit if the supply of labour is limited to 18600 hrs. All the three products are produced from the same direct material using the same type of machines and labour. (5 Marks) C. Suppose management decides that atleast 1000 Units of each product must be produced with the limitation of supply of labour to 18600 hrs. What is the oppurtunity cost of this decision versus the optimal product mix in Point B? (5 Marks) Answer A