Self-test Healthy Products uses a unique chemical (WX234) in the production of its range of pharmaceuticals. The only supplier of WX234 has just had a fire at its plant and for the next year supply will be restricted to 34,500 kilo per month.

Before the fire Healthy Products’ budgeted usage each month was:

Product A B C Sales (units) 24,000 15,000 30,000 Unit selling price £ 6 8 12 Unit variable cost £ 4 5 7 WX234 kilo 0.5 1 2 Fixed costs are £45,000 per month.

You are required to:

(i) rank the products in contribution per unit of WX234 used;

(ii) determine if there are any limiting factors; and

(iii) determine the current maximum possible monthly profit.