Question: please do this (a) Arnav Ltd. operates in beverages industry where it manufactures soft-drink in three sizes of Largo (3 litres), Medium (1.5 litres) and


please do this
(a) Arnav Ltd. operates in beverages industry where it manufactures soft-drink in three sizes of Largo (3 litres), Medium (1.5 litres) and Small (600 ml) botlles. The products are processed in batchas. The 5,000 litres capacity processing plant consumes eleciricily of 90 Kilowatls por hour and a batch takes 1 hour 45 minutes to complete. Only symmeirio size of products can be processed at a time, The machine set-up takes 15 minutes to get ready for next batch processing. During the set up, power consumption is only 20%. (I) The current price of Large, Medium and Small are 150, 90 and 50 respectively, (II) To produce a litre of beverage, 14 litres of raw material W and 25ml of Material-G are reguired which costs 0.50 and 1,000 per litre respectively. (III) 20 direct workers are required. The workers are paid 880 for B hours shiff of work. (IV) The average packing cost per bottle is 3 (V) Power cost is 7 per Kilowatt -hour (Kwh) (IV) The average packing cost per bottle is 3 (V) Power cost is 7 per Kilowatt -hour (Kwh) (VI) Other variable cost is 30,000 per batch. (VII) Fixed cost (Administration and marketing) is 4,90,00,000. (VIII) The holding cost is 1 per bottle per annum. The marketing team has surveyed the following demand (bottle) of products: Required: CALCULATE net profit loss of the organisation and also COMPUTE Economic Batch Quantity (EBQ). (10 Marks)
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