product mix decision when capacity constraints exist, Managerial Accounting

product mix decision when capacity constraints exist, Managerial Accounting

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a certain company makes 3 products A,B and C and they use the same raw material zhong.details about each product is as follows.production units are 10 000 for A,8 000 for B,12 000 for C. direct materials per unit is $8 for A,$6 for B,$4 for C. direct labour is per unit IS $7 for A,$8 for B,$9 for C.other direct variable production overheads is per unit is $3 for A,$4 for B, $5 for C.fixed production overheads is per unit IS $2 for A,$4 for B, $3 for C and selling price is per unit is $33 for A, $28 for B,$30 for C.Zhong costs $4 per kg. because of an earthquake that occur,the company has been advised by its suppliers that supply will decrease by 25%.what this company should do

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