Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

p23 Problem 29 A company engaged in plantation activities has 200 hectors of virgin land which can be used for growing jointly or individually tea,

image text in transcribed

p23 Problem 29 A company engaged in plantation activities has 200 hectors of virgin land which can be used for growing jointly or individually tea, coffee and cardamom, the yield per hector of the different crops and their selling prices per kg. are as under. 78 Yield in Kgs. 2.000 500 Tea Coffee Cardamom The relevant data are given below: Selling price per kg. R) 20 40 250 100 Labour charges Packing materials Other costs Tea 8 2 4 14 Coffee 10 2 1 13 Cardamom 120 10 20 150 (b) Fixed costs per annum: Cultivation and growing cost 10,00,000 Administrative cost 2.00.000 Land Revenue 50.000 Repairs and maintenance 2.50,000 Other costs 3,00,000 Total Cost 18.00.000 The policy of the company is to produce and sel all three kinds of products and the maximum and minimum area to be cultivated per product is as follows: Hectors Maximum Minimum Tea 160 120 Coffee 50 30 Cardamom 30 10 Calculate the most profitable product mix and the maximum profit which can be achieved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions