14.A business makes 3-wheeled and 2-wheeled bicycles. On 19 February, it has an inventory of 1,000 wheels. No more wheels will be received from the supplier until 15 March. The two types of bicycles are produced on the same machines by the same workers and take the same amount of time to manufacture. Everything about the bicycles is identical except for the number of wheels It can produce 400 bicycles in 4 weeks. It has a contract to deliver 120 2-wheeled bikes to a major retailer every month. The wheels cost 40 each. The 3-wheeled bicycle sells for 500. The 2-wheeled bicycle sells for 300. The contribution from the sale of one 3-wheeled bicycle is 300. Answer the following questions. Show all your calculations. (a) What is the contribution on the sale of one 2-wheeled bicycle? [2 marks] (b) If it can NOT purchase any more wheels in February, O how many 3-wheeled bicycles should it manufacture in the month? [1 mark] () how many 2-wheeled bicycles should it manufacture in the month? [1 mark] (c) If it can purchase 100 more wheels in February for 50 each, O how many 3-wheeled bicycles should it manufacture in the month? [1 mark] (it) how many 2-wheeled bicycles should it manufacture in the month? [1 mark] (d) When a business manufactures a range of products, there is usually a limiting factor that limits production. (0) Provide three examples of situations when businesses might produce products with lower contributions per limiting factor than others. [3 marks) 14.A business makes 3-wheeled and 2-wheeled bicycles. On 19 February, it has an inventory of 1,000 wheels. No more wheels will be received from the supplier until 15 March. The two types of bicycles are produced on the same machines by the same workers and take the same amount of time to manufacture. Everything about the bicycles is identical except for the number of wheels It can produce 400 bicycles in 4 weeks. It has a contract to deliver 120 2-wheeled bikes to a major retailer every month. The wheels cost 40 each. The 3-wheeled bicycle sells for 500. The 2-wheeled bicycle sells for 300. The contribution from the sale of one 3-wheeled bicycle is 300. Answer the following questions. Show all your calculations. (a) What is the contribution on the sale of one 2-wheeled bicycle? [2 marks] (b) If it can NOT purchase any more wheels in February, O how many 3-wheeled bicycles should it manufacture in the month? [1 mark] () how many 2-wheeled bicycles should it manufacture in the month? [1 mark] (c) If it can purchase 100 more wheels in February for 50 each, O how many 3-wheeled bicycles should it manufacture in the month? [1 mark] (it) how many 2-wheeled bicycles should it manufacture in the month? [1 mark] (d) When a business manufactures a range of products, there is usually a limiting factor that limits production. (0) Provide three examples of situations when businesses might produce products with lower contributions per limiting factor than others. [3 marks)
