Alfred Van Antwerpen X Clayton Georges Microsoft Word - Revision X C Get Homework Help e_resource/content/1/Revision%20Pack%20July%202020%20Questions.pdf Question 1. Musclemax Ltd produces three types of protein powder products: Dietary, Pre-work, and Recovery. These are sold by the bottle, each containing 15 kg. The distinguishing ingredient is milk powder from an overseas supplier. The unit costs of each product are shown below, on a monthly basis: Recovery Selling price Direct materials (milk powder usage in kg per unit) Direct labour cost (6.70 per labour hour) Dietary 25 0.6 Pre-work 32 0.4 46 0.7 3.35 5.36 6.70 In addition, the following information is provided: Total variable overheads Sales demand (units) 1,500 500 4,500 750 6,500 320 Direct materials costs are 19 per kg. The overseas government has recently restricted the export of the milk powder, which led to a restriction to 650 kg per month for Musclemax Lid. Due to the need for highly specialised expertise to produce the protein powder products in Great Britain, labour hours are only available to a maximum of 1300 hours per month Required: a) Explain what a limiting (or 'key') factor is and what sort of things can become limiting factors in a business situation. (6 marks) b) Determine the limiting factor in the production process of Musclemax Lid. (8 marks) c) What is the maximum total profit for the optimal production mix given the limiting factor identified in (a)? (19 marks) Total 3 marks S Alfred Van Antwerpen X Clayton Georges Microsoft Word - Revision X C Get Homework Help e_resource/content/1/Revision%20Pack%20July%202020%20Questions.pdf Question 1. Musclemax Ltd produces three types of protein powder products: Dietary, Pre-work, and Recovery. These are sold by the bottle, each containing 15 kg. The distinguishing ingredient is milk powder from an overseas supplier. The unit costs of each product are shown below, on a monthly basis: Recovery Selling price Direct materials (milk powder usage in kg per unit) Direct labour cost (6.70 per labour hour) Dietary 25 0.6 Pre-work 32 0.4 46 0.7 3.35 5.36 6.70 In addition, the following information is provided: Total variable overheads Sales demand (units) 1,500 500 4,500 750 6,500 320 Direct materials costs are 19 per kg. The overseas government has recently restricted the export of the milk powder, which led to a restriction to 650 kg per month for Musclemax Lid. Due to the need for highly specialised expertise to produce the protein powder products in Great Britain, labour hours are only available to a maximum of 1300 hours per month Required: a) Explain what a limiting (or 'key') factor is and what sort of things can become limiting factors in a business situation. (6 marks) b) Determine the limiting factor in the production process of Musclemax Lid. (8 marks) c) What is the maximum total profit for the optimal production mix given the limiting factor identified in (a)? (19 marks) Total 3 marks S