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A business manufactures high quality golf clubs. The following information relates to the business' four different brands Mike Edidas Pang Kobra Sales price 176 189

A business manufactures high quality golf clubs. The following information relates to the business' four different brands Mike Edidas Pang Kobra Sales price 176 189 260 380 Direct labour cost 54 78 105 150 Direct materials cost 95 87 135 170 Labour hours required per unit 9 6 10 12 Materials required per unit Maximum sales demand (units) 20kg 55kg 37kg 45kg 15,000 25,000 18,000 20,000 Required: (i) Advise the business on the mix of products that it should produce during the quarter in order to maximise profit if skilled labour hours are limited to 600,000 hours. (ii) Calculate the contribution for each product and in total which will arise as a result of the mix of products suggested in (i) above

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