12 Mar X Ltd manufactures three products in respect of wh
X Ltd manufactures three products in respect of which the following information is available: Product Fine Rs. Superfine Rs. Deluxe Rs. Cost of Materials per unit 100 16 124 Direct Skilled Labour per unit 24 18 16 Direct Unskilled Labour per unit 8 16 40 Variable Cost per unit 132 50 180 Selling Price per unit 240 140 200Fixed overheads are budgeted at Rs. 6,00,000. Skilled labour is paid at the rate of Rs. 12 per hour and unskilled labour is paid at Rs. 6 per hour. The marketing manager has estimated the quantity of sales as follows at the current price. Product Sales in Quantity Fine 20,000 units Superfine 28,000 units Deluxe 12,000 unitsThe availability of skilled labour is a constraint. Only 80,000 skilled labour hours would be available.You are required to work out the optimum product mix and ascertain the profit/loss expected at that level of output.
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