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A company produces three products, and is reviewing the production and sales budgets for the next accounting period. Product A Product B Product C Selling

A company produces three products, and is reviewing the production and sales budgets for the next accounting period.

Product A Product B Product C
Selling price/unit RM400 RM300 RM200
Direct material/unit RM153 RM101 RM80
Direct labour/unit RM95 RM80 RM60
Production overhead/unit RM40 RM35 RM15
Maximum demand (units) 200 600 1,000

Overhead absorption rate per machine hour is RM5 and the machine hours are strictly limited to 7,800 hours in total.

The profit that can be earned if the company is to maximise its profits is RM___. Please show all your workings.

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