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Please do asap Monty Ltd makes and sells three products. Details are indicated below: Aye Bee Cee (Rs) 45 75 110 Selling price Variable costs:
Please do asap
Monty Ltd makes and sells three products. Details are indicated below: Aye Bee Cee (Rs) 45 75 110 Selling price Variable costs: Direct materials_(Rs15 per litre) Direct labour (Rs 10 per hour) Fixed overheads for the year Demand (Rs) 15 (Rs) 10 (Rs) (units) 12,000 30 30 20 30 400,000 9,000 6,000 Availability of direct materials and direct labour are limited to 38,000 litres and 50,000 hours respectively. Required: 0 Determine the binding constraint. (3 marks) Calculate contribution per unit of the binding constraint and rank the products accordingly (6 marks) (iii) Obtain the optimum production mix and the resulting net profit. (7 marks)Step by Step Solution
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