PRODUCT

A B C

$$

Per Unit

A B C

Sale Price $605550$

Direct Material $201815$

Direct Labour $151412$

Variable overhead expenditure $131317$

Fixed Cost is $1,00,000$ per year.

Estimated Sales $($in No$.$ of units$)2,0002,0002\mathrm{.}000$

Due to break$-$down of one of the machines, the capacity is limited to $10,000$ machine hours only

and this is not sufficient to meet the total sales demand. Product A$,$ B and C require $1,2$ and $3$

machine hours to produce $1$ unit respectively

You are required to work out

$($a$)$ What will be most profitable product mix that should be produced, and

$($b$)$ The total contribution from the revised product mix.