Q.

When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit.

A. 250 units of A & 250 units of B
B. 500 units of B only
C. 400 units of A & 100 units of B
D. 150 units of A & 350 units of B
Answer» D. 150 units of A & 350 units of B
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