8. Pebbles Limited manufactures three beers: Light, Medium and Hard. Mediu Hard m 180 60 $6 10 Selling price Variable costs Direct labour hour rate per unit Machine hours per unit Product Light Medium Hard Light Demand 10,000 12,000 8,000 120 60 $10 6 200 100 Demand for the products are as follows, while machine hours are limited to 300,000 and labour hours to 100,000 hours: $5 12 Direct labour costs per unit are 50% of variable costs per unit. Variable costs include direct material and direct labour. Fixed costs for the period amounted to $1,750,000. Required: a. Determine the optimal product mix b. Determine the optimal profit c. What might cause an entity not to produce all products demanded? Limiting factor analysis