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10. A company makes two products X and Y. Product X has a contribution of birr 124 per unit and product Y birr 80 per

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10. A company makes two products X and Y. Product X has a contribution of birr 124 per unit and product Y birr 80 per unit. Product X requires 150 minutes in department 1 and 100 minutes in department 2, while product Y requires 90 and 120 minutes in department 1 and 2 respectively. Currently, there is a maximum of 225 hours per week available in department 1 and 200 hours in department 2. The company can sell all it can produce of X but EEC quotas restrict the sale of Y to a maximum of 75 units per week. The company currently makes and sells 30 units of X and 75 units of Y per week. A. Should the current production plan be changed or not? Why? Find the new production plan if the current is not optimal. B. Advise the management whether they should increase the capacity of either department 1 or department 2 and, if so, by how many hours and what the resulting increase in contribution would be over that calculated in the improved production plan. C. Calculate the minimum price per unit for which they could sell the rights to their own quota, down to the minimum level, given the plan in (A) as a starting point. D. Find the maximum price that can be paid for an additional hour in both departments 1 and 2

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