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(a) Covered Elements: No Change, (b) Uncovered Elements: Subtract LOE, (c) Junction Elements: Add LOE 3. So, in the next step, R. C, being a Junction Element, will be revised and be equal to LOE (ie a or bor cord, whichever is less) and also any one of the four items a, b, c, d will become zero. 4. In such Revised Matrix, 3 Lines are required to cover all Zeroes, and hence Optimal Assignment is possible. [Note: Independent Zeroes arise if any one of a, b, c, d becomes zero, hence 3 lines are required to cover all Zeroes.] 5. In such Optimal Solution, R. C being a non-zero element will not appear in the Final Solution as an Assignment. 18 Question 2(a): Marginal Costing - Maximum Price to Supplier 6 Marks ABC Ltd, produces a gadget made up of special Steel Plates. The Company gets an order for supply of 50,000 gadgets at a price of 680 per unit. The Gadgets are made of two halves (upper part and lower part) and then welded together. The Cost structure is: Materials 15 kg. per half @ + 10 per kg, Labour 60 per half. Welding Charges and Fitting Charges would be + 20 per gadget. The special Steel Plates are in short supply and ABC Ltd has stock of only 750 Tons. A Supplier has only the lower part and has offered to supply 50,000 numbers. Transportation and Handling will cost 6 per halt. Consider 1 ton = 1,000 kg) ABC Ltd could either execute its order to the extent of material available, or could fulfill the entire order by buying the lower part from the Supplier. Evaluate both the options and find out the Maximum Price that ABC would be willing to pay the Supplier per lower part if- 1. It wants to retain the same level of Profit per unit as in own manufacture. 2. If any additional revenue is preferred. Present your calculations to the nearest rupee