Question
Rahim & Co. is producing four products and is planning its production mix for the next year. Estimated cost, sales and production data for the
Rahim & Co. is producing four products and is planning its production mix for the next year. Estimated cost, sales and production data for the next year are as follows. BBA - Managerial Accounting Product A B C D Rs.106 Rs.88 Rs.20 Rs.24 Rs.70 Rs.50 5,000 5,000 Selling price per unit Material @ Rs.2 per kg Labour @ Rs.10 per hour Maximum demand in units Required: Rs.50 Rs.64 Rs.12 Rs.36 Rs.30 Rs.20 5,000 5,000 (a) Baseontheabovedata,whichisthemostappropriatemixunderthefollowingtwo assumptions If labour hours are limited to 50,000 in a period. If material is limited to 110,000 kg in a period. (b) Calculate the utilization of labour and material by each product.
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