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14 Tropica make a variety of skin care products. One of its product groups is face cream and they make three varieties. All the products

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14 Tropica make a variety of skin care products. One of its product groups is face cream and they make three varieties. All the products are high end products and have distinguishable features and Tropica will be able to charge a high price for these products. The following data for the forthcoming quarter is given: Hydrate Restore Renew Selling price (per jar of 30 gm) 27.50 30.00 28.50 Direct material (per jar) 8.00 8.50 8.25 Direct labour @ 7.50 per hour 9.00 9.75 10.25 Forecast Sales/production (jars) 500 510 520 Shortly after the budgeted output was agreed a machine breakdown occurred and, as parts are NOT available immediately, labour hours will be limited to 1,540 hours. Total Fixed cost for the quarter is 5,790. Q5. Calculate the production schedule that will optimise profit. Also calculate total contribution and total profit. (10 marks)

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