For future months it is not anticipated that shortages of material or labour will arise. The company is considering whether to manufacture the Supreme only in future months. Fixed costs have been identified as 25,000 per month. Variable costs will not change. REQUIRED: e. Using the break-even formula method, identify the break-even point in units, for the month for the Supreme. (5 marks) f. Using the break-even formula which shows the C/S ratio, identify the break-even point, in terms of revenue, for the month. (7 marks) A company manufactures two products, the Original and the Supreme. Both products utilise the same material and require skilled labour, Materials and skilled labour are the only variable costs. Product details are as follows: Materials cost 10 per kg. Skilled labour costs 12 per hour. For the month of March 2021 maximum demand is for 1,000 units of Original and 900 units of Supreme. In March, there is a restriction on the availability of both material and skilled labour. There are 7,000kgs of material available and 7,800 hours of skilled labour. REQUIRED: a. Identify whether materials or skilled labour is the limiting factor. (20 marks) b. Calculate the contribution per unit of scarce resource for that limiting factor and identify the optimum order of production (22 marks) c. Prepare the optimal production budget for the month. (13 marks) d. Identify the contribution that would be made in the month using the optimal production budget plan. (9 marks) For future months it is not anticipated that shortages of material or labour will arise. The company is considering whether to manufacture the Supreme only in future months. Fixed costs have been identified as 25,000 per month. Variable costs will not change. REQUIRED: e. Using the break-even formula method, identify the break-even point in units, for the month for the Supreme. (5 marks) Using the break-even formula which shows the C/S ratio, identify the break-eve point, in terms of revenue, for the month. (7 mark