Reference no: EM132654855

Castries Ltd makes three products: Gimie: Gros and Petit. The budgeted production for three months is follows:

                                                    Gimie                 Gros                Petit

No. of units                         1000                 2000              800

Selling price per unit             $14                  $25               $ 20

Direct material per unit (litres)  2.5                   3.25                  4

Direct labor per unit             0.5                       1.5               0.6

Direct material costs $2 per litre. Direct labor is paid at $10 per hour.

Fixed expenses are $10:000. C.tries Ltd h. been informed that only 10575 litres of material are available.

Required:

Problem 1: Construct revised budget that will produce the most profit from the available materials.