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Question - Joseph Ltd makes two products, the odds and the Ends. Unit variable costs are as follows.
Odds (RS)
Ends (RS)
Material
2
4
Labour (@ rs.3/hr)
6
3
FOF
Total
10
9
The sales price per unit is Rs. 16 per Odd and Rs. 13 per End. During July 20X2 the available direct labor is limited to 8,000 hours. Sales demand in July is expected to be 3,000 units for Odds and 5,000 units for Ends.
Required - Find out the profit maximizing product mix?
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