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CIND Ltd produces three brush sets; the artists set, the painters set and the make-up set. The following data for each brush is available for

CIND Ltd produces three brush sets; the artists set, the painters set and the make-up set.

The following data for each brush is available for the next quarter:

Demand sets (units)

150

300

350

Artist

Painters

Make up

Sale Revenue per unit

43

35

25

Variable costs per unit

37

27

16

Allocated Fixed costs per unit

7

2

4

Profit per unit

(1)

6

5

All brush sets use animal hair as follows:

Artist

Painters

Make up

Hair per set (grammes)

12

20

36

The supplier for animal hair has gone bankrupt and supply will be affected for the next quarter.

With reference to the above explain the concept of a limiting factor.

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