Q.2 The following particulars are extracted from the records of M.B. Plastics Ltd. Plastic Pipes Plastic...

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Q.2 The following particulars are extracted from the records of M.B. Plastics Ltd. Plastic Pipes Plastic Sheets Sales (per unit) Rs 270 Rs 290 ? ? Plastic Granules [Material Usage per unit : 4 kg; 5kg] Direct Wages [ Labour Usage per unit: 3 hrs ; 2 hrs] ? ? Direct Expense Rs 55 Rs 40 Rs 50 Fixed Expenses Rs 60 The plastic granules were procured @ Rs 15/kg. Labour was paid @ Rs 20/hr. The maximum sales potential of Plastic Pipes is 4,500 pipes and Plastic Sheets is 3,000 sheets. In case there is limited availability of raw material and only 25,000 kgs of plastic granules are available. Making use of the variable costing method suggest how many plastic pipes and plastic sheets should the company manufacture and sell to maximize the profits? Normal (15 Marks) Q.2 The following particulars are extracted from the records of M.B. Plastics Ltd. Plastic Pipes Plastic Sheets Sales (per unit) Rs 270 Rs 290 ? ? Plastic Granules [Material Usage per unit : 4 kg; 5kg] Direct Wages [ Labour Usage per unit: 3 hrs ; 2 hrs] ? ? Direct Expense Rs 55 Rs 40 Rs 50 Fixed Expenses Rs 60 The plastic granules were procured @ Rs 15/kg. Labour was paid @ Rs 20/hr. The maximum sales potential of Plastic Pipes is 4,500 pipes and Plastic Sheets is 3,000 sheets. In case there is limited availability of raw material and only 25,000 kgs of plastic granules are available. Making use of the variable costing method suggest how many plastic pipes and plastic sheets should the company manufacture and sell to maximize the profits? Normal (15 Marks)

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Plastic Pipe Plastic Sheet a Salesper unit 270 290 b Plastic Granules 60 ... View the full answer