The cost per unit of the three products x, y and z of a concern is...

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The cost per unit of the three products x, y and z of a concern is as follows: Direct material Direct labour Variable expenses Fixed expenses X (Rs.) 6 10 4 y (Rs.) 7 8 5 2 (Rs.) 9 3 3 3 2 23 23 20 Profit 9 7 6 Selling price 32 30 26 No. of units produced 10,000 5,000 8,000 Production arrangements are such that if one product is given up, the production of the others can be raised by 50%. The directors propose that z should be given up because the contribution in that case is the lowest. Analyze the case and give your opinion. The cost per unit of the three products x, y and z of a concern is as follows: Direct material Direct labour Variable expenses Fixed expenses X (Rs.) 6 10 4 y (Rs.) 7 8 5 2 (Rs.) 9 3 3 3 2 23 23 20 Profit 9 7 6 Selling price 32 30 26 No. of units produced 10,000 5,000 8,000 Production arrangements are such that if one product is given up, the production of the others can be raised by 50%. The directors propose that z should be given up because the contribution in that case is the lowest. Analyze the case and give your opinion.

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Before dropping Z No of units Produced Selling Price Less Direct Material Direct L... View the full answer