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Following information is obtained from the Lanka Traders Product P Q R Unit Selling Price Rs. Total Direct Cost per unit Rs. Machine time requirement

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Following information is obtained from the Lanka Traders Product P Q R Unit Selling Price Rs. Total Direct Cost per unit Rs. Machine time requirement per unit hrs 20 15 2 30 20 2 50 30 S Maximum Demand per month-in unit 5.000 10,000 10.000 The Managing Director is concerned about firm's production capacity which is limited to 75.000hrs machine time per month due to break-down of one machine. Spare-paits should be imported from aboard and will not be available until end of next month. Required to calculate a) Unit contribution for each product b) Total machine hour requirement if company decides to fill total demand c) Total shortage of machine hours d) Optimum production plan (13 Marks) (TOTAL 25 MARKS) 31

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