Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No....

 

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Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No. I || III IV Particulars Selling price (3) Variable cost (3) Contribution (2) Contribution per machine hour (2) Priority Available hours 19,800 (-) Hours for B (3,000 x 4) 12,000 7,800 Units of A = 7,800/3 = 2,600 A 10 8 2 2/3 = 0.67 || Statement showing optimum mix under given conditions and computation of profit at that mix Sl. No. Particulars B Total 1 No. of units 11 Contribution per unit (3) III Total contribution (2) IV Fixed cost (2) V Profit Selling price per unit (3) Variable cost per unit (2) Fixed expenses/month (3) Maximum production per month (units) Total hours available for the month Maximum demand per month (units) A A 2,600 2 5,200 p25 B 15 12 3 3/4= 0.75 I Problem 33 Taurus Ltd. produces three products A, B and C from the same manufacturing facilities. The cost and other details of the three products are as follows: 200 120 5,000 B 3,000 3 9,000 2,000 The processing hour cannot be increased beyond 200 hrs per month. You are required to: 160 120 8,000 14,200 9,900 4,300 4,000 C 100 40 2,76,000 6,000 200 2,400 (a) Compute the most profitable product-mix. (b) Compute the overall break-even sales of the co., for the month based in the mix calculated in (a) above. Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No. I || III IV Particulars Selling price (3) Variable cost (3) Contribution (2) Contribution per machine hour (2) Priority Available hours 19,800 (-) Hours for B (3,000 x 4) 12,000 7,800 Units of A = 7,800/3 = 2,600 A 10 8 2 2/3 = 0.67 || Statement showing optimum mix under given conditions and computation of profit at that mix Sl. No. Particulars B Total 1 No. of units 11 Contribution per unit (3) III Total contribution (2) IV Fixed cost (2) V Profit Selling price per unit (3) Variable cost per unit (2) Fixed expenses/month (3) Maximum production per month (units) Total hours available for the month Maximum demand per month (units) A A 2,600 2 5,200 p25 B 15 12 3 3/4= 0.75 I Problem 33 Taurus Ltd. produces three products A, B and C from the same manufacturing facilities. The cost and other details of the three products are as follows: 200 120 5,000 B 3,000 3 9,000 2,000 The processing hour cannot be increased beyond 200 hrs per month. You are required to: 160 120 8,000 14,200 9,900 4,300 4,000 C 100 40 2,76,000 6,000 200 2,400 (a) Compute the most profitable product-mix. (b) Compute the overall break-even sales of the co., for the month based in the mix calculated in (a) above.

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