X Ltd manufactures three products in respect of which the following information is available:
Cost of Materials per unit
Direct Skilled Labour per unit
Direct Unskilled Labour per unit
Variable Cost per unit
Selling Price per unit
Fixed 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.
Sales in Quantity
The 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.