19.22A Jackson Demetrios Limited manufactures three different types of office desk. Type A has extra drawers, type B has a printer shelf and type C has a moveable footrest.

In the company's present factory, production facilities are limited and there is a restriction on the number of machine hours available. The directors have considered moving to larger premises, but they are unwilling to make the move just at the moment because of fears of a downturn in the office furniture market.

Cost and selling price information for each type of desk is as follows:

Type A Type B Type C £
£
£
Selling price per unit Variable materials costs 175 160 165 Wood 37 35 35 Plastics 16 15 18 Screws and fixings 2 2 2 Variable labour costs 18 16 16 Machine hours required per unit 2.5 hours 2.0 hours 2.1 hours Sales demand for 20X6 1 400 1 600 1 550 Machine hours available are 4000 hours during 20X6. You are required to:
i) Advise the directors on the most profitable production plan available to them without further expansion of the premises.
ii) Calculate the overall contribution to fixed costs (to the nearest £) if your recommended production plan is followed.