=+8. The Caradoc Company has two divisions. The Argent Division makes three products (Al, A2 and A3) which are transferred to the Belvoir Division. The Belvoir Division uses Argent's products as raw materials which it converts into two different final products (BI and B2). Production and cost information for the two Divisions is given below.

Argent Division Production Data Machine requirements (hrs)

Production of one unit of'

Al A2 A3 Machine availability (hrs)

L 1

2 1

480 Machine M N 1 1 3 1 2 3 715 640 Variable cost of production f4 f7 f9 Belvoir Division Production Data Production o{

one unitof"

Input requirement Machine requirement (hrs)

Al A2 A3 X y BI B2 3

1 Machine availability (hrs)

2 2

Belvoir Division Costs and Revenues Saleso{

one unit of"

BI B2 Required:

Sales revenue f50 f60 1

3 5

3 270 4

6 300 Additional variable processing costs incurred in Belvoir Division f7 f9