Compute of bl net profit for the month of february

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BL) Limited is engaged in the manufacture and sale of three products viz. Pentagon, Hexagon and Octagon. Following information is available from BL's records for the month of February 2012:

  • Each worker is paid monthly wages of Rs. 15,000 and works a total of 200 hours per month. BL's total overheads are estimated at 20% of the material cost.
  • Fixed overheads are estimated at Rs. 5 million per month and are allocated to each product on the basis of machine hours. 100,000 machine hours are estimated to be available in February 2012.

Required:

Question 1: Based on optimum product mix, compute of BL's net profit for the month of February 2012

Reference no: EM132548012

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