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.