3 Question 3 (32 marks) - Production Decisions Lennon Pic's management accounts show the following information for products R, S & T which it produces Product 625 21 Direct materials 65 per kg Direct labour 7 per hour Selling price Machine hours per unit Maximum sales demand S T 120 E15 14 21 145 560 ESS 4 2 20,000 units 25,000 units 8,000 units In the next year, due to factory capacity constraints only 200,000 machine hours & 100,000 labour hours will be available, and the material supplier has assured Lennon Pic of unlimited supplies. Requirements: a. Identify the limiting factor - is it materials, labour hours, or machine hours? Your workings should clearly show the excess or shortage. (8 marks) b. Using your answer to part (a), determine the optimal production plan which will maximise contribution. Your workings should clearly show the order in which products R S & T should be produced and also the respective quantities. (12 marks) Requirements: a. Identify the limiting factor - is it materials, labour hours, or machine hours? Your workings should clearly show the excess or shortage. (8 marks) b. Using your answer to part (a), determine the optimal production plan which will maximise contribution. Your workings should clearly show the order in which products R, S & T should be produced and also the respective quantities. (12 marks) c. Calculate the maximum contribution based on the optimum production plan determined in part (b) above. Show all workings. (8 marks) d. If fixed costs for product S are 120,000, calculate the breakeven point (BEP) for products in units. (4 marks) Fill in voller here