A. Avanti Smart Sdn Bhd manufactures and sells three types of mountain bikes for the local market. The budgeted cost per bike and related information are as follows: Selling price per unit Direct material per unit Direct labour per unit Budgeted sales Forte RM1,800.00 RM600.00 6 hours 1,500 units Montari RM1,400.00 RM525.00 4 hours 2,000 units Vapour RM1,600.00 RM575.00 5 hours 2,500 units Variable overhead is absorbed based on RM21 per direct labour hours. Skilled labour are paid at a rate of RM35 per hour. Fixed overhead of the company is RM1,525,000. The production capacity available is 25,000 labour hours. Required: a. Establish whether direct labour will be a limiting factor for Avanti Smart Sdn Bhd. (2 marks) Calculate the production mix that can maximize the company's profit and determine the profit. b. C. (12 marks) Assume that the company decides to increase sales by 15% for the most profitable product, determine: i. The new product mix. (2 marks) ii. The new profit for the company. (3 marks) d. Do you agree with the company's decision in (c) above and give reasons to your answer. (1 mark)