XY limited is manufacturing 3 household products A, B and C and selling them in a competitive market. Details of the current demand, selling price and cost structure are given below:

A

B

C

Expected Demand (Units)

10,000

12,000

20,000

Selling Price per Unit (Rs.)

20

16

10

Variable Cost per Unit (Rs.):

Direct Materials (Rs. 10/Kg)

6

4

2

Direct Labour (Rs. 15/hour)

3

3

1.5

Variable Overheads

2

1

1

Fixed Overhead per Unit (Rs.)

5

4

2

The company is frequently affected by acute scarcity of raw materials and high labour turnover. During the next period, it is expected to have one of the following situations:

a) Raw materials available will be only 12,100 Kgs.

b) Direct labours available will be only 5,000 hours.

Suggest the best production plan in each case and the resultant profit that the company would earn.