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solve itt please Illustration 9 A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or
solve itt please
Illustration 9 A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or individually tea, coffee, and cardamom. The yield per hectare of the different crops and their selling price per kg. are as under: Yield Selling Price (kgs.) (per kg.) Tea 2,000 20 Coffee 500 40 Cardamom 100 250 The relevant cost data are given below: (a) Variable cost per kg.: Tea (3) 8 2 4 14 Coffee () 10 2 Labour charges Packing materials Other costs Total cost Cardamom () 120 10 20 150 13 EP-CA&CMA-14 682 (b) Fixed cost per annum: Cultivation and growing cost Administrative cost Land revenue Repairs and maintenance Other costs Total cost 10,00,000 2,00,000 50,000 2,50,000 3.00.000 18,00.000 The policy of the company is to produce and sell all the three kinds of products and the maximum and minimum are to be cultivated per product is as follows: Maximum Area Minimum Area (hectares) (hectares) Tea 160 120 Coffee 50 30 Cardamom 30 10 Calculate the priority of production, the most profitable product mix and the maximum profit which can be achievedStep by Step Solution
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