248 7:03 Dec.2016 AFM Ques... : PART C-(1 x 20 = 20 marks) Compulsory 17. The cost per unit of the three products x, y and z of a concern is as follows: X y z (Rs.) (Rs.) (Rs.) Direct material 6 7 6 Direct labour 10 8 9 4 5 3 Variable expenses Fixed expenses 3 3 2 20 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. 8 MBAC 1003/ MBLC 1001 ) ? U