1311'| WEEK CASE 2 10% IN THE FINAL DUE ON APRIL 10TH! 2021 BEFORE 11.59 The management team at MN Limited is considering the budgets it prepared for the year ending 31 December 2014. It has now been revealed that in June 2014 the company will be able to purchase only 10,000 litres of material 0 (all other resources will be fully available). In the light of this new information, the management team wants to revise its plans for June to ensure that prots are maximized for that month. MN Limited can produce three products from the same labour and main raw material Q, though different amounts are required for each product. The standard resource requirements, costs and selling prices. and the customer demand for delivery in June lincluding those orders already accepted 1 for each of its nished products are as follows: Product V Product 3 Product T Resources per unit: Material Q 10 litres 8 litres 5 litres Direct labour 8 hours 9 hours 6 hours Selling prices and costs: 5 per unit $ per unit 5 per unit Selling price 145.00 134.00 99.00 Material Q 25.00 20.00 12.50 Other materials 10.00 4.00 8.50 Direct labour 40.00 45.00 30.00 Overheads: Variable 10.00 11.25 7.50 Fixed* 24.00 30.00 12.00 109.00 110.25 ?0.50 Customer demand 1,100 units 950 units 1,450 units MN Limited has already accepted customer orders for delivery in June 2014 as follows: Product V 34 units Product 8 75 units Product T 97 units The management team has decided that these customer orders must be satised as the nancial and non-nancial penalties that would otherwise arise are very signicant. Given the shortage of material Q, the management team has now set the following inventory levels for June: Opening inventory Closing inventory Material 0* 621 litres 225 litres Product V 20 units 10 units Product 8 33 units 25 units Product T 46 units 20 units