Following data are given : Product-A Product-B Contribution per unit (₹) 30 28 Direct labour (hours per unit) 5 4 Maximum possible production (units) 10,000 10,000 Direct labour hours available 72,000 hours. What should

CS Executive · Cost and Management Accounting · PYQS · June 2016
Following data are given : Product-A Product-B Contribution per unit (₹) 30 28 Direct labour (hours per unit) 5 4 Maximum possible production (units) 10,000 10,000 Direct labour hours available 72,000 hours. What should be the number of units of A and B to be produced to maximise profit of the company —
(A) A-10,000 units, B-5,500 units
(B) B-10,000 units, A-5,500 units
(C) B-10,000 units, A-6,400 units
(D) 10,000 units of each A and B.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Decision Making

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