The following particulars are extracted from the records of a company. Per Unit Product A Product B 100 2 Kg. 10 15 5 Sales Consumption of material Material cost Direct wages cost Direct expenses Machine hours used Overhead expenses: Fixed Variable 100 3 Kg. 15 10 6 2 wer 5 15 10 20 Management Accounting 7.68 Direct wages per hour is * 5. Comment on profitability of each product (both use the same raw material) when: (i) Total sales potential in units is limited; (ii) Total sales potential in value is limited; (iii) Raw material is in short supply; (iv) Production capacity (in terms of machine hours) is the limiting factor. Ans. If the limiting factor is: Sales : Profitability is higher with B product: Raw material : Profitability is higher with A product; Production capacity : Profitability is higher with B product