Q2. Al-Ward Company provides a product to different customers in different sectors. Managing directorevaluated the company production capacity and decided to provide the product to only any one countryfrom where they can earn maximum profit. On the basis of below information, solve question (a) and (b)below. Consider variable cost is 3.50 R.O per unit and fixed cost is 70000 R.O.Sales Per Unit (currency in R.O)Estimated Sales per year (units)***********Selling andOverheads (Per Unit)Clothes15.00160,000distribution 1.00Manufacturing22.00140, 0001.00Food5.00410,0001.00(a) In which sector company should sale its product and why. Calculate profit for all three sectors.(b) Provide suggestions and recommendations based on analysis.

Computation of profit of Clothing, Manufacturing and Food Particulars Calculation Clothing…

Answered: Q2. Al-Ward Company provides a product…

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

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