Example 5: A company produces three products. The GM has prepared the draft budget for the next year. A B Number of units 30000 20000 40000 Selling price (Rs/unit) 40 80 20 PN Ratio 20% 40% 10% Raw material cost as %age to sales value 40% 35% 45% Maximum sales potential (units) 40000 30000 50000 The company uses the same raw material in all the three products and the price per kg for the raw material is? 2. The company envisages profit of 10% on the budgeted turnover before interest and depreciation which are fixed. Interest and depreciation are estimated at 300000 and 100000 respectively. The draft budget makes full utilization on the available raw material which is in short- supply the MD is not satisfied with the budgeted profitability and hence he has passed on the aforesaid draft budget to you for review. Required: . Set an optimal product mix for the next year and find its profit. The company has been able to locate a source for the purchase of an additional 20000 kgs of raw material at an enhanced price. The transport cost of this additional quantity is 10000. What is the maximum price per kg that can be offered by the company for the additional quantity of raw material