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Asempa Company manufactures three products: Asem, Papa, and Bone. The budgeted sales demand, unit selling price, and unit variable cost for the month of June,
Asempa Company manufactures three products: Asem, Papa, and Bone. The budgeted sales demand, unit selling price, and unit variable cost for the month of June, 2015 are as follows: Other relevant data are as follows: i. All the three products use the same direct materials and the same type of labour. A unit of raw material cost GH10 and the wage bill per hour of direct labour is GH20. ii. The budgeted sales relate to July. The available supply of materials will be restricted to 9,600kg and the available supply of direct labour to 6,600 hours. iii. The monthly fixed cost is GH45,000 Required: i. Determine which of the two (2) resources (material and Labour) is a limiting factor. ii. Determine the production/sales mix that will maximize the company's profit. iii. Calculate the maximum net profit that can be achieved for the month
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