Shiplon Products Ltd., manufactures 3 different products. The relevant data of these products are as under:
The Company has various alternatives for improving profitability as given below:
- To stop the production of Jelly and use the released capacity for producing Pomade. The machine for both the products are common. However, cream is produced on a special purpose machine.
- To export the total production of Jelly at current price. On export, the following additional revenue is expected:
- 8% Duty Drawback on export price.
- 12% Cash Compensatory Support against an export scheme of government.
- 5% Replenishment Licence which can be sold ...