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A farming company is able to produce four products and is planning its production mix for the next period. Estimated costs, sales, and production data

A farming company is able to produce four products and is planning its production mix for the next period. Estimated costs, sales, and production data are given below.

 

PRODUCT:                OKRO           BEANS         MELON         PEANUT

                                    ¢                      ¢                      ¢                      ¢

Selling Price                      40                    60                    80                    72

Labour (@ ¢2/hr)              12                      8                    28                    20

Fertilizer (@ ¢1/kg)          12                    36                    20                    24

Contribution                     16                    16                    32                    28

Resources / Unit

Labour (hours)                  3                        2                      7                      5

Fertilizer (Kgs)                 6                      18                    10                    12

Max. Demand (units)   10,000              10,000             10,000           10,000

 

Required:

 

(a) Based on the above data, what is the most appropriate production mix under the following assumptions?

(i) If labour hours are limited to 100,000 in a period or

(ii) If fertilizer is limited to 220,000 Kgs. in a period.

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