Raw materials .X. costing Rs. 100 per kg and Y costing Rs. 60 per kilogram are mixed in

equal proportions for making product A. The loss of material in processing works out to

25% of the output. The production expenses are allocated at 50% of direct material cost.

The end product is priced with a margin of 331/3% over the total cost. Material Y is not

easily available and substitute raw material .Z. has been found for .Y. costing Rs. 50 per

kg. It is required to keep the proportion of this substitute material in the mixture as low as

possible and at the same time maintain the selling price of the end product at existing

levels and ensure the same quantum of profit as at present.

You are required :

To Compute what should be the ratio of mix of the raw materials X and Z.