BirdPlc produces three products, R, S, and T. Production and sales details are given below:

During the next period the supply of materials is limited to 250,000kgs, the labour hours available are 100,000 and the machine hours available are 180,000.

Requirements:

1. Which of the three, Direct Materials, Direct Labour and Machine Hours is the limiting factor?(8 marks)

1. Based on your answer in part a, determine the production plan which will maximisecontribution. State the order that the R, S and T should be produced and also the respective quantities. (Show your workings)(12 marks)

1. Calculate the total contribution based on the production plan in part b..(8marks)

1. If the fixed costs for product R, are 110,000, calculate the BEP for product R in units.(4marks)