3 (25 marks) Windhoek Enterprises manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows: Product D G N$ per unit N$ per unit Selling price 115 120 Direct material A (N$5 per kg) 20 10 Direct material B (N$3 per kg) 12 24 Skilled labour (N$7 per hour) 28 21 Variable overhead (N$2 per machine hour) Fixed overheads** 14 18 28 36 13 11 Profit ** Fixed overheads are absorbed using absorption rate per machine hour. This is an unavoidable central overhead cost which is not affected by the mix or volume of product produced. The maximum weekly demand for products D and G is 400 units and 450 units respectively, and this is the normal weekly production volume achieved by Windhoek Enterprises. However, for the next four weeks the achievable production level will be reduced as a result of a shortage of available resources. The resources that are expected to be available per week are as follows: Direct material A Direct material B Skilled labour Machine time 1800 kg 3500 kg 2500 hours 6500 machine hours The following is the final simplex tableau derived from the information above. Variables in D G Skilled Machine Material A Material B QTY solution mix labour time D 1 0 0 0 0.34 -0.08 308.33 Skilled labour 0 0 1 0 -0.86 -0.17 416.67 G 0 1 0 0 -0.16 0.17 283.33 Machine time 0 0 0 1 -0.89 -0.92 1791.67 Z row ? ? ? ? ? ? ? C-Z row ? ? ? ? ? ? Marks Required Sub Total total 3.1 Formulate the equations for the objective function and the constraints for the above problem? 7 7 3.2 Total The optimal solution for this problem is shown on the simplex report above, complete the Z row, C-Z row and interpret the results (all amounts in Qty column, Z row and C-Z row for material A as well as material B). 18 25 25 25