b$)$ You are a leader of a team that have expertise in advising organizations that are constrained in resources so as to maximize total contribution and hence, profit.

Dee and Co$.$ Ltd$.$ makes two products, D and B$.$ Available labour hours for Dee and Co$.$ Ltd$.$ are limited to $131,000$ hours and $105,000$ units of the materials are failsafe. The individual product costs are as follows:

Product D Product B

GHS GHS

Direct materials $615$

Direct labour $1512$

Variable overhead $23$

Material and labour required:

Direct material required per unit $35$

Direct labour hours required $56$

The selling price per unit is GHS$42$ per product D and GHS$39$ for product B$.$

Sales demand in July $2022$ is expected to be as follows:

Product D $9,500$ units

Product B $15,000$ units

Required:

Your team is to advise the management of Dee and Co$.$ Ltd$.$ on the most profitable production mix and ascertain the most optimal profit expectation if the fixed cost for the month is GHS$240,000.$

c$)$ Decision making is crucial in every organization and demonstrate to be more essential when needed resources are limited$.$ The application of limiting factor analysis technique becomes necessary in such situation.

Required:

Explain briefly the underlying assumptions to consider when applying the limiting factor analysis technique.