1. A company is able to produce four products in its planning production mix for the next period.

Estimated cost, sales and production data are given below, per unit of each product:

Products W X Y Z

GHS GHS GHS GHS

Selling price (per units) 200 300 400 360

Less: Cost per unit: Labour at GHS20/hr 60 40 140 100

Material at GHS10kg 60 180 100 120

Contribution 80 80 160 140

Resource/unit: Labour (hours) 3 2 7 5

Material (kg) 6 18 10 12

Maximum demand (units) 5000 5000 5000 5000

Required

1. Calculate total contribution for all products assuming all units of each product could be sold and there is no constraint on production.
2. Calculate the most appropriate mix under the following two assumptions:

- Labour hours are limited to 50,000 hours

- Material is limited to 110,000 kg.

(iii) Calculate total contribution under the two assumptions.