Arnav Ltd. operates in beverages industry where it manufactures soft-drink in three sizes of Largo (3 litres), Medium (1.5 litres) and Small (600 ml) bottles. The products are processed in batchas. The 5,000 litres capacity processing plant consumes electrically of 90 Kilowatts per hour and a batch takes 1 hour 45 minutes to complete. Only symmetric size of products can be processed at a time, The machine set-up takes 15 minutes to get ready for next batch processing. During the set up, power consumption is only20%. 

(I) The current price of Large, Medium and Small are ₹ 150, ₹ 90 and ₹ 50 respectively, 

(II) To produce a litre of beverage, 14 litres of raw material W and 25mlof Material-G are required which costs ₹0.50and ₹1,000 per litre respectively. 

(III) 20 direct workers are required. The workers are paid ₹ 880 for hours shiff of work. 

(IV) The average packing cost per bottle is ₹3 

(IV) The average packing cost per bottle is ₹ 3 

(V) Power cost is₹7per Kilowatt -hour (Kwh)

(VI) Other variable cost is₹30,000per batch. 

(VII) Fixed cost (Administration and marketing) is₹4,90,00,000. 

(VIII) The holding cost is₹1per bottle per annum. The marketing team has surveyed the following demand (bottle) of products: 

Required: 

CALCULATE net profit loss of the organization and also COMPUTE Economic Batch Quantity (EBQ).

Answer rating: 100% (QA)

The net profit will be 30000902571000 30000502571... View the full answer