Brass Ltd produces two products, the Masso and the Rasso. Budgeted data relating to these products on a unit basis for September are as follows:

	Masso	Russo
Selling price	R150	R100
Materials	R80	R30
Commission	R30	R20

Each unit of product incurs costs of machining and assembly. The total capacity available for September is budgeted to be 700 machining and 1000 hours of assembly, the cost of this capacity being fixed at R7000 and R10 000 respectively for the month, whatever the level of usage made of it.

The number of hours required in each of these departments to complete one unit of output is as follows:

Department	Masso	Russo
Machining	1	2
Assembly	2.5	2

Under the terms of the South African government special controls have been introduced whereby the selling prices are fixed and the maximum permitted output of either product is 400 units. At the present controlled selling prices the demand for the product exceeds this considerably.

You are required:

produced by Brass Ltd to maximize profit. show all your workings to earn more marks. (36)

• 1. 1.1. Using graphic linear programming method, determine the number of units to be
  2. 1.2. Solving simultaneously, prove the accuracy of the answer in 1.1. (10)
  3. 1.3. Calculate the profit earned for the month of September. (4)
  4. 1.4. Outline some key assumptions and limitations pertaining to linear programming. (6)