Question: Please make sure the answer is correct Queation1: Moon Ltd. produces products 'X', 'Y' and 'Z and has decided to analyze its production mix in
Queation1: Moon Ltd. produces products 'X', 'Y' and 'Z and has decided to analyze its production mix in respect of these three products - 'X', 'Y' and 'Z. You have the following information: X Y Z Direct Materials (RO per unit) 160 120 80 Variable Overheads (RO per unit) 8 20 Direct labor: Departments: Rate per Hours per Hours per Hours per Hour (RO) unit unit unit X Y Z 12 U N 4 6 10 5 Department-A Department-B 8 6 15 11 From the current budget, further details are as below: X YZ Annual Production at present in units) 10,000 12,000 20,000 Estimated Selling Price per unit (RO) 312 400 Sales departments estimate of possible sales in 12,000 16,000 24,000 the coming year (in units) 240 There is a constraint on supply of labor in Department-A and its manpower cannot be increased beyond its present level. Required: (i) IDENTIFY the best possible product mix of Moon Ltd. (ii) CALCULATE the total contribution from the best possible product mix
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