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17 A company manufacturers 1000 of a product called Zugagaat a total cost 120,000 and a marginal cost of 100,000. Zugaga could be bought out

17 A company manufacturers 1000 of a product called "Zugaga"at a total cost 120,000 and a marginal cost of 100,000. Zugaga could be bought out for 150 each. The production capacity could be used to make an item "Ayife" with a contribution of 75 each. Should the company buy or make the item.A company produces three products A, B and C all of which passes through the same finishing process. For the coming month, the number of hours available in the finishing process is 6,000 hours. Data relating to each product are as follows. Product A Product B Product C Selling Price per unit (GH) 30 36 41 Variable cost per unit (GH) 20 27 35 Processing time per unit (minutes) 45 36 25 Maximum Monthly demand (units) 4500 4500 4500 Required: i. Calculate the number of minutes needed by each product ii. Calculate the contribution earned by each product iii. Calculate the contribution of each product per minute iv. How many units of product A, B and C should be produced to maximise the profits of the firm taking into account the limiting factor

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