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1 Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they through the department. 2 3

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1 Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they through the department. 2 3 3 For the next six months, the following monthly capacity will be available in the department: Available time in direct labour hours 3,700 The related data for each product is as follows: Direct labour hours per unit Demand in units Contribution margin per unit Fixed overhead per unit MO7 T28 B19 2.0 1.0 2.5 500 400V 1,000 $147 $82 $108 $15 $10 $32 5 Required: - 1. In what order should demand for the products be filled? Show supporting calculations. (3 marks) M07 T28 B19 Order 27 08 9 2. Is there enough capacity to satisfy the demand for all products? Show supporting calculations. (3 marks) MO7 T28 B19 dhe prod 3. Based on the results from parts 1 and 2. determine the number of units of each product that could be proced? Show supporting calculations. (3 marks) 38 39 40 41 42 43 44 45 46 47 M07 T28 B19 8 Number of units 9 4. Based on the results from parts 1 and 3, determine the total contribution margin that could be earned. Show supporting calculations. (1 mark) MO7 T28 B19

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