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1. Company ABC is a manufacturing company specialized in three auto parts denoted by X, Y, and respectively. The company is preparing for the budgets

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1. Company ABC is a manufacturing company specialized in three auto parts denoted by X, Y, and respectively. The company is preparing for the budgets for the next year and has collected the following information: Y Z $20 $30 $40 Raw materials costs /unit Labor hours needed 0.3 02 0.1 /unit Machine hours needed 0.5 1 0.9 /unit Market demand in units 10,000 20,000 15,000 Price in s $55 $70 $85 The company allocates $10 of variable overhead cost to each labor hour. The total fixed cost for the entire company is $300,000 The company has a total labor budget of $50,000 with an hourly labor cost of $10. . After calculation, it costs $0.5 to run the machine for 1 hour. Company's total budget for running machine is $20,000. Does the company have any constraint? If yes, what is the constraint? (2 marks) . Given the constraint, what is the optimal production plan for the company that maximizes the company's profit? (4 marks) Company ABC has another two products: A and B. A can be sold "as is" (price: $300) or processed further into product A1 (price: $500). B can be sold "as is" (price: $200) or processed further into product 31 (price: $280). The allocated joint costs of A and B are $20 and $10, respectively. The cost of further processing costs of A and B are $180 and $77, respectively. Which product should be processed further and why? (4 marks)

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