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Example 8 Industrial Fitments Ltd produce three types of shelving ('Factory', 'Stores' and 'Office'), which are made from the same basic material (i.e., mild steel)
Example 8 Industrial Fitments Ltd produce three types of shelving ('Factory', 'Stores' and 'Office'), which are made from the same basic material (i.e., mild steel) which costs K100 per square metre. The standard unit cost of the three products are as follows: Factory Store Office K K K 84 78 75 14 25 30 10 15 19 4 7 6 175 186 190 Sales expectations for the forthcoming month are: Units Factory 2,000 Stores 2,400 Office 1,600 Owing to an industrial dispute, suppliers of mild steel have intimated that they will be able to supply only 2,500 square metres during the month. Required (a) Prepare a statement which will enable you to advise management on the most profitable production pattern
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