Question
In a factory producing two different kinds of articles, the limiting factor is availability of material but the same material is used in both articles.
In a factory producing two different kinds of articles, the limiting factor is availability of material but the same material is used in both articles. Cost per unit Material Labour Overheads : Variable Fixed Total Selling price per unit(net) Product A (Rs.) 15 6 2 6 29 35 Product B(Rs.) 10.00 4.50 1.00 4.50 20.00 24.50 The demand during each period for the two products is 10,000 units of A and 8,000 units of B. It is also considered desirable that, should demand be there, the firm should be willing to meet at least half the demand stated above in all circumstances. The total availability of materials for some will be restricted to the quantity available for Rs. 1,20,000 only. You are required to advice on how the available materials should be utilized.
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