2. An Accra-based Company manufactures and sells three different types of high-quality sealed ball bearings. The bearings vary in terms of their quality specifications primarily with respect to their smoothness and roundness. They are referred to as Finc, Extra-Fine, and Super-Fine bearings. Machine time is limited. More machine time is required to manufacture the Extra-Fine and Super-Fine bearings. Additional information is provided below. Selling price Variable cost and expenses Machine hours required Maximum demand (units) Products Fine $6.00 $4.00 0.02 10,000 Extra-Fine $10.00 $6.50 0.04 10,000 Super-Fine 16.00 11.00 0.08 10,000 Required: a) Explain the term limiting factor in a production strategy and give some examples. 2 marks b) Ignoring the machine time constraint, what strategy would appear optimal? 3 marks c) What is the contribution margin per unit of limited resource for each type of bearing? 5 marks d) Assuming machine hours are limited to 400 hours in a period, determine the optimal production mix. 5 marks 3