A company manufactures three components. These components pass through two of the company’s departments P and Q. The machine hour capacity of each department is limited to 6,000 hours in a month. The monthly demand for components and cost data are as under:

Components	A	B	C
Demands (Units)	900	900	1350
	Rs.	Rs.	Rs.
Direct Material/unit	45	56	14
Direct Labor/unit	36	38	24
Variable Overheads/unit	18	20	12
Fixed Overheads
P @ Rs.8 per hour	16	16	12
Q @ Rs.10 per hour	30	30	10
Total	145	160	72

Components A and C can be purchased from the market at Rs.129 each and Rs.70 each respectively.

You are required to prepare a statement to show which of the components in what quantities should be purchased to minimize the cos.

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