When a firm manufactures more than one article, an issue frequently arises as to the product mix or the sales mix which will capitulate the maximum profits. In ascertaining the maximum or profitable sales mix, the articles which give the optimum contribution are to be reserved and their production must be augmented. The production of articles which give relatively lesser contribution must be decreased or plunged altogether.

1. When a firm manufactures more than one article,
an issue frequently arises as to the product mix or
the sales mix which will capitulate the maximum
profits.
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2.  In ascertaining the maximum or profitable sales mix, the
articles which give the optimum contribution are to be
reserved and their production must be augmented.
 The production of articles which give relatively lesser
contribution must be decreased or plunged altogether.
Let us discuss this with an illustration.
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4.  Fixed overheads budgeted to $100,000, total direct
labour hours available is 200,000.The concern does not
have need of to reduce the manufacture of Article A
below 60,000 units and Article B below 200,000 units.
 Presume that materials are liberally available and can be
liberally used with direct labour for either of articles
subject to the minimum manufacture as predetermined
above.
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5.  Suggest the most excellent manufacture program by
outlining the steps, along with the
 statements for the need and depict the net profit
anticipated from this program.
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12.  Form the above it is apparent that the net profit for
the recommended programs are
 likely since contribution per labour hour, the limiting
factor is equal for each articles.
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