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Cuddly Limited makes stuffed toys. The RAK factory manufactures Camel, Oryx and Falcon.The following information is per unit of each product Camel Oryx Falcon Demand

Cuddly Limited makes stuffed toys. The RAK factory manufactures Camel, Oryx and Falcon.The following information is per unit of each product Camel Oryx Falcon Demand units 30,00040,00020,000AED AED AED Selling price 8.009.0010.00 Direct Materials 2.002.005.00 Direct labour 3.004.501.50 Variable overhead 1.001.001.00 Fixed overhead 1.001.001.50At maximum capacity, 40,000 labour hours are available. Labour is paid at 6 per hour. Total fixed costs are 100,000
Required:a. calculate the production plan that will maximise profit for the next year
b. prepare a marginal costing statement to show the profit that will be made using yourproduction plan
c. if the company has already committed to supplying 30,000 Oryx to a long termcustomer then what is the new production plan?

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