abc ltd which produces three products furnishes the following data for the year 1998 608276
ABC Ltd, which produces three products, furnishes the following data for the year 1998:
|
Products |
|||
|
Alfa |
Beta |
Gama |
|
|
Selling Price per unit (Rs.) |
100 |
75 |
50 |
|
P/v Ratio |
10% |
20% |
40% |
|
Maximum Sales Potential (units) |
40,000 |
25,000 |
10,000 |
|
Raw Material as a % of Variable Cost |
50% |
50% |
50% |
The company uses the same raw material for all the three products. Raw material is in short supply and the company has a quota for supply of raw material of the value of Rs. 18,00,000 for the year 1998 for manufacture of its products to meet its sales. The total Fixed Cost is Rs. 6,80,000.
You are required to:
- Determine a sales mix which will give the maximum overall profit keeping in view the short supply of raw material.
- Compute the maximum profit.