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Nirit Ltd. is a company that manufactures and sells both products A and B. The company can purchase raw materials without restriction. The following are

Nirit Ltd. is a company that manufactures and sells both products A and B. The company can purchase raw materials without restriction.

The following are data regarding production:

data

A

B

Cost of raw material per unit in NIS

95

72

Direct labor cost per unit in NIS - per machine hours

?

?

Indirect cost varies per unit in NIS - per machine hours

?

?

Fixed indirect costs per unit in NIS

25

25

Total unit cost

?

?

Selling price per unit

350

400

Monthly demand in units

7500

4500

Direct working hours are required to create a single unit

4

5

Direct machine hours are required to create a single unit

3

3.5

In addition

Production capacity - working hours per month

50000

Production capacity - machine hours per month

40000

The cost of a direct hour of work is NIS

22

Indirect cost varies in NIS per machine hour

6

The product mix that will bring maximum profit is:

From product A we will produce and sell 5,500 units, and from product B we will produce and sell 3,500 units.

From product A we will produce and sell 5,500 units, and from product B we will produce and sell 3,375 units.

From product A we will produce and sell 4,500 units, and from product B we will produce and sell 3,000 units.

None of the other answers are correct

From product A we will produce and sell 4,500 units, and from product B we will produce and sell 4,000 units.

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