Product mix decision under capacity constraint cost analysis and decision making

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When a firm manufactures more than one article, an issue frequently arises as to the product mix or the sales mix which will capitulate the maximum profits. Continue Reading Product Mix Decision under Capacity Constraint - Cost Analysis and Decision Making

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When a firm manufactures more than one article, an issue frequently arises as to the product mix or the sales mix which will capitulate the maximum profits. In ascertaining the maximum or profitable sales mix, the articles which give the optimum contribution are to be reserved and their production must be augmented. The production of articles which give relatively lesser contribution must be decreased or plunged altogether.

Transcript of Product mix decision under capacity constraint cost analysis and decision making

  • 1. When a firm manufactures more than one article,an issue frequently arises as to the product mix or the sales mix which will capitulate the maximum profits. Continue Reading

2. In ascertaining the maximum or profitable sales mix, thearticles which give the optimum contribution are to be reserved and their production must be augmented. The production of articles which give relatively lesser contribution must be decreased or plunged altogether. Let us discuss this with an illustration. Continue Reading 3. Fixed overheads budgeted to $100,000, total directlabour hours available is 200,000.The concern does not have need of to reduce the manufacture of Article A below 60,000 units and Article B below 200,000 units. Presume that materials are liberally available and can be liberally used with direct labour for either of articles subject to the minimum manufacture as predetermined above. Continue Reading 4. Suggest the most excellent manufacture program byoutlining the steps, along with the statements for the need and depict the net profitanticipated from this program.Continue Reading 5. Form the above it is apparent that the net profit forthe recommended programs are likely since contribution per labour hour, the limitingfactor is equal for each articles. Continue Reading 6. 1 Accounting 9 C 17 JavaScript 2 Finance 10 Visual Basic 18 Shell Scripting 3 Statistics 11 C# (C Sharp) 19 Math 4 Economics 12 Matlab Programming 20 Chemistry 5 Operations 13 Database 21 Physics 6 Marketing 14 ER Diagrams 22 Dissertations 7 Java 15 Oracle 23 Case Study 8 C++ 16 Microsoft (MS) Access 24 Project ManagementContinue Reading 7. Website: http://www.tutorsonnet.com Mail Us: [email protected] Phone: +91 98803 85500