Answer it with explanation

Danoly is a company that manufactures 3 products: Milk, Natural Yoghurt and Fruit Yoghurt. The company is divided in 3 profit centers. each producing one product. until now, each division has to satisfy, firstly, the internal demand before it can satisfy the demand from the external market. The selling price for internal or external demand is the same. TWO units Of milk are needed to produce one unit Of natural yoghurt and one unit Ot natural yoghurt is needed to produce one unit of fruit yoghurt. The expected Profit & Loss Account for next year is as follow: Table A Sales Direct materials Gross milk Milk Natural yoghurt Fruit Other variable costs Contribution margin Fixed costs EBT Other information: Table B External Demand (units) Internal Dernand (units) Installed capacity (units) Used capacity Market selling price per unit Number of machine hours used unit produced 400.000 c 200.000 c 150.000 c 50.000 c 30.000 c 20.000 C yog hurt 200.000 c 100.000 c 20.000 c 80.000 c 20.000 c 60.000 C Fruit yoghurt 350.000 200.000 c 20.000 c 80.000 c 50.000 c 10.000 c 40.000 C 300.000 100.000 500.000 yoghurt 100.000 50.000 50.000 3 yoghurt 50.000 100.000 2 However, due to the damage of a machine (used to produce all the 3 products), the capacity of production will have to be reduced to 200.000 Machine hours. Poge 61 / 96 NOVA SCHOOL OF BUSINESS & ECONOMICS 1202 - MANAGEMENT ACCOUNTING HANDBOOK OF PROBLEMS 1) Which product mix will maximize the profit the company as a whole? What is the expected contribution margin ? Imagine now that the company could repair/fix the machine on time of the production for next year. and the installed capacity available is the one mentioned in Table B. The Natural division receives a special order for a new dient that is willing to pay SO.SOOC for it. This Order requires 20.000 units Of milk and 23.000 Of Other variable Costs. If the division accepts this special order, it Will reduce the production Ot natural yoghurt in 5.000 units. 2. Do you think that the Comp 61 de 96 supporting calculations. accept this special order? Show your Problem 44 - 1. 50.000 Natural and 25.000 Fruit 2. Relevant Costs = 48500; Accept