Sr. Particulars No APPLES () LEMONS R) ORANGES () PEACHES ) Sales value per acre (*) 7,500 2.250 3,000 9,000 (ii) Variable cost Material 270 105 90 150 Growing labour 300 225 150 195 Pickings & Packing labour 750 225 300 900 Transport 1,500 450 150 900 2,820 1,005 690 2.145 (ii) Contribution 4.680 1.245 2,310 6,855 Priority IV III 1 Statement showing optimum mix under given conditions and computation of profit at that mix: Apples (2) Lemons Oranges Particulars Peaches Total ) () Minimum production in boxes 18,000 18,000 18,000 18,000 Area utilized for these minimum 34 120 180 90 426 Remaining area 24 24 (i) No. of area 36 120 180 114 450 (ii) Contribution per acre 4,680 1.245 2,310 6,855 (iii) Total contribution 1.68,480 1.49,400 7,15,800 7.81,470 15,15,150 (iv) Fixed cost 2.10,000 M Profit 13.05.150 p24 Problem 31 A market gardener is planning his production for next season and he asked you, as a cost consultant, to recommend the optimum mix of vegetable production for the coming year. He has given you the following data relating to the current year: POTATOES TOMATOES PEAS CARROTS Area occupied in acres 25 20 30 25 Yield per acre in tons 10 8 90 12 Selling Price perton () 1.000 1.250 1,500 1.350 Variable Cost per acre: Fertilizer 300 250 450 400 Seeds 150 200 300 250 Pesticides 250 150 200 250 Direct Wages 4,000 4,500 5,000 5,700 Fixed Overhead per annum: 25,40,000 The land which is being used for the production of carrots and peas can be used for either crop but not for potatoes and tomatoes. The land being used for potatoes and tomatoes can be used for either crops but not carrots and peas. In order to provide an adequate market service, the gardener must produce each year at least 40 tons of each of potatoes and tomatoes and 36 tons of each peas and carrots. You are required to present a statement to show: (a) (1) The profit for the current year. (2) The profit for the production mix you would recommend; (b) Assuming that the land could be cultivated in such a way that any of the above crops could be produced and there was no market commitment. You are required to: (1) Advice the market gardener on which crop he should concentrate his production. (2) Calculate the profit if he were to do so, and (3) Calculate in rupees the breakeven-point of sales