Deena Precision Tools (DPT) makes cutting tools for metalworking operations. It makes two types of tools: RC6, a regular cutting tool, and HP4, a high precision cutting tool. RC6 is manufactured on a regular machine, but HP4 must be manufactured on both the regular machine and a high-precision machine. The following information is available: Selling price Variable manufacturing cost per unit Variable marketing cost per unit HP4 RC6 RM200 RM300 RM120 RM200 RM30 RM70 RM700,000 RM1,100,000 Hours required to produce one unit on the regular machine 1.0 0.5 Budgeted total fixed overhead costs Additional information includes the following: i. ii. iii. iv. DPT faces a capacity constraint on the regular machine of 50,000 hours per year. The capacity of the high-precision machine is not a constraint. Of the RM1,100,000 budgeted fixed overhead costs of HP4, RM600,000 are lease payments for the high-precision machine. This cost is charged entirely to HP4 because DPT uses the machine exclusively to produce HP4. The company can cancel the lease agreement for the high-precision machine at any time without penalties. All other overhead costs are fixed and cannot be changed. Required: (a) What product mix, that is, how many units of RC6 and HP4-will maximize DPT's operating income? Show your calculations. (6 marks) la il batunimils od nes tilt ties boxil me (b) Suppose DPT can increase the annual capacity of its regular machines by 15,000 machine hours at a cost of RM300,000. Should DPT increase the capacity of the regular machines by 15,000 machine hours? By how much will DPT's operating income increase or decrease? Show your calculations.