Rahim & Co. is producing four products and is planning its production mix for the next...

 

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Rahim & Co. is producing four products and is planning its production mix for the next year. Estimated cost, sales, and production data for the next year are as follows. Products A D Selling price per unit Material @ Rs. 2 per kg. Labour @ Rs. 10 per hour Rs. 50 64 106 88 Rs. 12 36 20 24 Rs. 30 20 70 90 50 Rs. 42 56 74 Contribution per unit Rs. 8. 16 14 Maximum demand (units) Required:- 5,000 5,000 5,000 5,000 Based on the above data, which is the most appropriate mix, if labour hours are limited to 50,000 in a period. Rahim & Co. is producing four products and is planning its production mix for the next year. Estimated cost, sales, and production data for the next year are as follows. Products A D Selling price per unit Material @ Rs. 2 per kg. Labour @ Rs. 10 per hour Rs. 50 64 106 88 Rs. 12 36 20 24 Rs. 30 20 70 90 50 Rs. 42 56 74 Contribution per unit Rs. 8. 16 14 Maximum demand (units) Required:- 5,000 5,000 5,000 5,000 Based on the above data, which is the most appropriate mix, if labour hours are limited to 50,000 in a period.

Answer rating: 100% (QA)

Products A B C D Contribution per unit a Rs 8 8 16 14 Labor costs Rs 30 20 70 ... View the full answer