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  3. a company engaged in plantation activities has 200

A company engaged in plantation activities has 200 hectares of virgin land which can be...

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Accounting

A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or individually tea, coffee and cardamom. The yield per hectare of the different crops and their selling prices per kg. are as follows: Tea 2,000kgs @ Rs.200; Coffee 500kgs @ Rs.400; and Cardamom 100kgs @ Rs.2,500. The relevant cost data are as under: a) Variable cost per unit: Labour charges Tea @ Rs.80 Coffee @ Rs.200 Cardamom @ Rs.1,200 Packing Material - Tea @ Rs.20 Coffee @ Rs.20 Cardamom @ Rs.100 Other costs - Tea @ Rs.40 Coffee @ Rs.10 Cardamom @ Rs.200 b) Fixed Cost per annum (Rs.) Cultivation & Growing Cost 100,00,000 Administrative Cost 20,00,000 Land Revenue 5,00,000 Repairs & Maintenance 25,00,000 Other Costs 30,00,000 The policy of the company is to produce and sell all the three kinds of products and the maximum and minimum area to be cultivated per product is as follows: for Tea - hectares 160 (max) & 120 (min); for Coffee - hectares 50 (max) & 30 (min); ; and for Cardamom - hectares 30 (max) & 10 (min). Calculate the most profitable product mix and the maximum profit which can be achieved

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