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Products A B C Selling Price 84 56 70 Direct Materials 24 15 9 Labor and Other Costs 28 27 40 Quantity of Alvera 8 Lb. 5 Lb. 3 LB
Products A B C Selling Price 84 56 70 Direct Materials 24 15 9 Labor and Other Costs 28 27 40 Quantity of Alvera 8 Lb. 5 Lb. 3 LB
A B C
Selling price 84 56 70
Variable costs
Direct materials 24 15 9
Labor and other costs 28 27 40
Quantity of Alvera 8 lb. 5 lb. 3 lb.
Cost of Alver 3
Max quantity available 5000
Minimum of 200 product each
Part B
They can pay a maximum of 7 rs/kg of alvera in this situation there would be no profit no loss
A B C
84 56 70
3 3 3
Cost of producing 1 unit 52 42 49
profit per unit 29 11 18
Quantiy of alvera used for 200 unit each 1600 1000 600
Left of alvera lbs 1800
To maximize profit Compnay should produce C as unit fetches more profit per alver used
Remaing 1800 lbs alvera used for C 600
Total unit produced
A 1600
B 1000
C 1200
49
16333.3333333333
Part B
400000
In house in costly