3. New York plc manufactures and sells three ornaments: a bridge, a statue and a train. All the products are made using the same machinery. The total labour time available each month is 75,000 hours but this is not enough to produce all the units of each ornament to meet the maximum demand for them. New York plc currently holds no stocks of these products. Total fixed costs for the month are 120,000. Labour is paid 8 an hour. The Finance Director has given you the following information and asks you to help determine how the company should allocate the labour hours for the next period. Question Continued AC107 2019/20 A 800 Turn over Page 6 Bridge Maximum monthly demand (units) 27,000 Selling price per unit 180 Contribution to sales ratio 20% Labour cost per unit 16 Statue Train 18,000 9,000 225 252 24% 25% 8 12 Required (a) Calculate how many extra labour hours New York plc would need to satisfy the maximum demand for all the products at the same time. (7 marks) Bridge Maximum monthly demand (units) 27,000 Selling price per unit 180 Contribution to sales ratio 20% Labour cost per unit 16 Statue Train 18,000 9,000 225 252 24% 25% 8 12 Required (a) Calculate how many extra labour hours New York plc would need to satisfy the maximum demand for all the products at the same time. (7 marks) (b) Determine the monthly production plan in units that will maximise the company's total contribution from the products (18 marks) (c) Calculate the total contribution and profits arising from the optimal production in (b) above