hi sir, hope your doing well, In question 3 of the practice test in chap 14 (PM) I am quite confused as to why they take the ratio as 7/10 for x and 3/10 for y. is it because the std contribution is said to be 30%. even though,is it by default like this? why cant it be 7/10 for y and 3/10 for x? kindly,clarify.
The question says that they have budgeted on selling 7,000 of X and 3,000 of Y. That is 10,000 in total of which 70% are X and 30% are Y. That is the ratio in which they should be producing.