Calculate the mix of sales which would enable Xebec Ltd to maximise profits, and calculate the profit for the year which would be achieved by that sales mix.

Transcribed image text: Xebec Ltd manufactures three perfumes, Silk, Musk and Opia. The selling prices and the variable costs per unit of each product are as follows: Musk 20 14 Opia Silk Selling price 15 Variable cost 10 Xebec's fixed costs are 150,000 per year. 30 20 Question B2 continued over the page Please turn the page Page 6 of 7 University of Bolton Off Campus Division RAK Business Management Trimester 3 Examination 2016/17 Financial Reporting for Management Module No. BAM6008 Question B2 Continued There is a shortage of the raw material called Essence which is used in all three products. Silk uses 2 kilos, Musk uses 1 kilo and Opia uses 3 kilos of Essence per unit of output. Only 120,000 kilos of Essence will be available for the year. In addition, market constraints are expected to restrict the production and sales of each product for the year to: Silk 40,000 units, Musk 8,000 units and Opia 15,000 units