BkTech Sdn Bhd produces three types of decorative vases. The budgeted cost per vase and related information are as follows:

	Ceramic Vase	Porcelain Vase	Flower Vase
Selling price per unit	RM60	RM40	RM50
Direct material per unit	RM20	RM15	RM18
Direct labour per unit	8 hours	4 hours	6 hours
Budgeted sales	1,000 units	1,500 units	2,500 units

Variable overhead is absorbed based on RM1.20 per direct labour hours. Wages are paid at a rate of RM2.50 per hour. Fixed overhead of the company is RM20,000. The production capacity available is 25,000 labour hours.

Required:

1. Establish whether direct labour will be a limiting factor. Calculate the production mix that can maximize the companys profit and determine the profit. (Please show all your workings up to two decimal places)
2. Assume that the company decides to increase sales for the most profitable products by 20%, what is the new production mix for the company and how much is the profit?