My Answers to the AMA Questions. Please tell me If they are wrong
1(a) 21000 hours or 1.75 hours/ unit
1(b) Gain 36800
1(c) (i) 36400 (ii) 33200 (iii) 35200
1(d) (i) Optimum Solution (after allocation and other working) (ii) 1 alternate optimum solution was there.
2(a) & (b) Not Attempted
3(a) (i) Total Profit 1833000 or Incremental Profit 168000 (ii) Transfer will result in loss. Even at Rs. 37 Transfer rate company as a whole incurring loss
3(b) (i) Production Budget M-60000 units P-120000 units and Requirements P-300000 Q-480000 (ii) EOQ P-200 units and Q-160 units
4(a) (i) 5 (ii) 10 (iii) 15 (iv) 20000 (v) 20
4(b) Critical Path 1-3-6-7-8 Total Duration 51 Days
5(a) (i) 8867.50 (ii) 241.90 (iii) 32.98
5(b) Current Scenerio Profit 192 Lacs and Proposed Scenerio Profit 524.80 Lacs
6(a) Rs. 48000 Positive Change.
6(b) Not Attempted
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