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2. Fathma, the marketing manager, asked for the equal production of the various sizes of bed sheets that the home decoration department manufactures. According to

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2. Fathma, the marketing manager, asked for the equal production of the various sizes of bed sheets that the home decoration department manufactures. According to Ahmed All, there is limited supply of raw materials used in the production. The decision comes after the preparation of the production budget. He presented to you the following production data. The home decoration department of the company produces three sizes of bed sheets. The sheet is made from linen fabric that costs OMR 0.550 per metre. The workers are paid for OMR 0.200 per hour. The company incurred fixed costs of OMR1,200 in 2019. The production data for 2019 follows: Twin 1.3 Size Direct material (metre per unit) Direct labour (hours per unit) Direct expenses (per unit) Selling price per unit 2 Queen 2 2.5 OMR 2.5 OMR5 King 2.5 3 OMR 4 OMR 5 OMR 2 OMR 5 The supply of linen fabric is limited to 1,000 metres. The budget production (based upon maximum demand) follows: Twin (200 bed sheets); Queen (220 bed sheets) and King (180 bed sheets). 1. Based from the given data, prepare a production budget that will yield maximum profit from the material available. 2. Based from your production budget, explain the reasons for unequal production of bed sheets. 3. Discuss measures to maximize profit with limited resources

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