3 Misha is an entrepreneur who run a home based bakery in Kota Kinabalu. She produces four types of cookies under her own brand namely Makmur Cookies, Pineapple Tart Cookies, London Almond Cookies, and Red Velvet Cookies. The production process of these four products uses the same labour and machine, maximum labour hour and machine hour is 7,500 hours and 14,600 hours per month respectively. The table below shows production requirement and demand: Makmur Pineapple London Red Velvet Products Cookies Tart Almond Cookies Cookies Cookies Labour hours per pack 4 8 8 Machine hours per pack 12 16 20 16 Normal demand per month 300 200 150 200 (packs) During month of May 2021, demand for Makmur Cookies, Pineapple Tart Cookies, London Almond Cookies, and Red Velvet Cookies increased to 400 packs, 300 packs, 250 packs and 300 packs respectively, the increase is due to Eid al-Fitr celebration. Budgeted fixed overhead is RM5,000 per month. Standard cost card for the four products are as follows: Makmur Pineapple London Almond Red Velvet Products Cookies Tart Cookies Cookies Cookies RM RM RM RM Standard costs per unit: Direct Materials 12 12 14 16 Direct Labours 8 10 14 16 Variable Overhead 4 10 10 Selling Price 60 66 90 86 Required: a) Evaluate the limiting factor for the month of May 2021, labour hour or machine hour or both. (3 marks) b) Given the constraints in (a) above, calculate the profitable mix of the products that will maximize the profit for the month of May 2021 (show all workings) (12 marks) c) In order to overcome the constraints in (a) above, Misha suggested to buy London Almond Cookies from other supplier at a cost of RM54 per pack including transportation and rebranding. Advise Misha on this suggestion. (4 marks)d) Identify FIVE (5) qualitative factors that management should consider before making a decision to make or to buy the products. (5 marks) (Total: 24 marks) END OF QUESTION PAPER