The following particulars are extracted from the record of a company. Product A Product B (Per unit) (Per unit) Selling price (Rs.) Consumption of raw materials (Kg) Direct Wages Cost (Rs.) Direct Expenses(Rs.) 100 2 15 5 120 3 10 6 Overhead Expenses Fixed (Rs.) Variable (Rs) 5 15 10 20 Raw material cost per Kg is Rs. 5/=. Assume raw materials as the limiting factor, availability of which is 10,000 Kg per month. If maximum sales potential of each product is 3,500 units per month, find out the product mix which will maximize the company profit. Also, determine the profit that will be earned at the above product mix. (07 Marks) iv. A manufacturing company is considering replacing its old machine with a new machine which will reduce the variable operating costs. The old machine was purchased three years ago for Rs. 360,000/=. Depreciation based on a useful life of six years with no salvage values has been recorded each year. The new machine will cost Rs. 300,000/=, and will have an expected life of three years with no scrap value. The variable operating costs are Rs.3.50 per unit of output for the old machine and Rs.2/- per unit for the new machine. It is expected that both machines will be operated at their maximum capacity of 25,000 units per annum. The old machine can be sold for Rs.200,000/- at present. Should the company replace the new machine or not? Provide relevant calculations. (07Marks)