Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Following information has been made available from the cost records of United Automobiles Ltd., manufacturing spare parts. Direct Materials X Rs.8 per unit, Y Rs.6
Following information has been made available from the cost records of United Automobiles Ltd., manufacturing spare parts. Direct Materials X Rs.8 per unit, Y Rs.6 per unit Direct wages X 24 hrs @25 paise per hour. Y 16 hrs @25 paise per hour Variable Overheads ..... 150% of wages Fixed Overheads ........Rs.750/- Selling price X Rs.25 & Y Rs.20 The directors want to be acquainted with the desirability of adopting any one of the following alternative sales mixes in the budget for the next period. a. 250 units of X and 250 units of Y. 6.400 units of Y only C. 400 units of X and 100 units of Y, d. 150 units of x and 350 units of Y State which of the alternative sales mixes you would recommend to the management Marginal Cost Statement per unit) Y Dart Mai B 6 Dit was 6 Varble 011 9 6 Mapisil Cat 21 16 Contribution Selling Price 25 Selecoon of Sales Adre Contributi per un 250 un 250 un 1 100 4 400 un 100 un + 1.50 350 + SOO 1000 Total Contration Les Fixed Cost 1500 1600 1600 800 100 1200 300 1400 1700 750 3 S13 Vinak limited which produces 3 products furnishes you the following data for 1991-92 A B Selling price per unit (Rs.) 100 75 50 Profit Volume Ration (%) 10 20 40 Maximum sales potential (units) 40000 25000 10000 Raw material content as % age of 50 50 50 variable costs (%) The fixed expenses are estimated at Rs.680000. The company uses a single raw material in all the three products. Raw material is in short supply and the company has a quota for the supply of raw materials of the value of Rs. 18,00,000 for the year 1991-92 for the manufacture of its products to meet its sales demand You are required to Set a product mix which will give the maximum overall profit keeping the short supply of raw materials in view Compute that maximum profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started