gal A X File | C:/Users/daisy/AppData/local/Microsoft/Windows/lNetCache/E/IKTIYMUL/ADIFM Advanced%20Managerial%20Acco A Read aloudy Draw Highlight Ewe QUESTION TWO [401 Zek Ltd assembles heavy industrial switchboxes. Hitherto, Zak Lid has assembled only one type but recently a decision was made to expand the product range into two types. The following data pertains to each switchbox Existing product Z886 (R) New product Z797 (R) Selling price per unit 8 000 6 800 Variable costs per unit: Direct materials 6 000 5 600 - Direct labour 500 400 500 200 Manufacturing overhead Specific fixed costs per day 10 000 5 000 Zek Ltd's total general fixed costs per day amount to R27 000, The organisation operates its factory 24 hours per day and this equates to one operating cycle Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows Assemble Test 6 2 2686 2797 3 6 e re to search nuagerial ATX File C:/Users/daisy/AppData/local/Microsoft/Windows/INetCache/1E/IKTIYMUL/ADIFM Advanced%20Managerial:20ACCO E A Read aloud Draw Highlight Existing product 2685 (R) New product ZTS (R) Selling price per unit 6 800 Variable costs per unit: Direct materials 6 000 5 600 Erase 8 000 Direct labour 500 400 500 200 Manufacturing overhead Specific fixed costs per day 10 000 5 000 Zek Ltd's total general fixed costs per day amount to R27 000 The organisation operates its factory 24 hours per day and this equates to one operating cycle. Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows: Assemble Test 2686 2 6 2797 6 3 Zek Ltd is limited to 600 assembly hours and 400 testing hours in one operating cycle Management is anxious to ascertain the following, but are unsure as to how to determine these factors: The most profitable daily (that is, in one operating cycle) production combination 3 1 earch ORI C/Users/daisy/AppData/local/Microsoft/Windows/lNetCache/1E/TKTIYMULADIFM_Advanced%20Managerial%20Acco... E A Read aloud V Draw Highlight u Erase 2 The minimum number of units which should be produced in one operating cycle if Zek Ltd wishes to achieve a total daily profit of R10 000 method. Required 2.1 Explain why linear programming is appropriate in determining the optimal production solution for Zek Ltd. (3) 2.2 Outline the steps to be undertaken when using the graphic linear programming (5) 2.3 Determine, using graphic linear programming the production combination for Zek Ltd which maximises daily profit. (Draw the graph in your answer book. Ensure that you label the graph comprehensively and clearly.) (17) Solving algebraically, verify your answer in 1.3. (2) Calculate the production mix which will achieve the desired daily profit of R10 000 (8) Outline some key assumptions and limitations pertaining to linear programming (5) 2.4 2.5 2.6 [15] QUESTION THREE Assess in detail pricing policies and also provide a discussion of when it will be appropriate for businesses to use each type of pricing policy [15] QUESTION FOUR Evaluate the limitations of financial performance measures END OF QUESTION PAPER h o . gal A X File | C:/Users/daisy/AppData/local/Microsoft/Windows/lNetCache/E/IKTIYMUL/ADIFM Advanced%20Managerial%20Acco A Read aloudy Draw Highlight Ewe QUESTION TWO [401 Zek Ltd assembles heavy industrial switchboxes. Hitherto, Zak Lid has assembled only one type but recently a decision was made to expand the product range into two types. The following data pertains to each switchbox Existing product Z886 (R) New product Z797 (R) Selling price per unit 8 000 6 800 Variable costs per unit: Direct materials 6 000 5 600 - Direct labour 500 400 500 200 Manufacturing overhead Specific fixed costs per day 10 000 5 000 Zek Ltd's total general fixed costs per day amount to R27 000, The organisation operates its factory 24 hours per day and this equates to one operating cycle Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows Assemble Test 6 2 2686 2797 3 6 e re to search nuagerial ATX File C:/Users/daisy/AppData/local/Microsoft/Windows/INetCache/1E/IKTIYMUL/ADIFM Advanced%20Managerial:20ACCO E A Read aloud Draw Highlight Existing product 2685 (R) New product ZTS (R) Selling price per unit 6 800 Variable costs per unit: Direct materials 6 000 5 600 Erase 8 000 Direct labour 500 400 500 200 Manufacturing overhead Specific fixed costs per day 10 000 5 000 Zek Ltd's total general fixed costs per day amount to R27 000 The organisation operates its factory 24 hours per day and this equates to one operating cycle. Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows: Assemble Test 2686 2 6 2797 6 3 Zek Ltd is limited to 600 assembly hours and 400 testing hours in one operating cycle Management is anxious to ascertain the following, but are unsure as to how to determine these factors: The most profitable daily (that is, in one operating cycle) production combination 3 1 earch ORI C/Users/daisy/AppData/local/Microsoft/Windows/lNetCache/1E/TKTIYMULADIFM_Advanced%20Managerial%20Acco... E A Read aloud V Draw Highlight u Erase 2 The minimum number of units which should be produced in one operating cycle if Zek Ltd wishes to achieve a total daily profit of R10 000 method. Required 2.1 Explain why linear programming is appropriate in determining the optimal production solution for Zek Ltd. (3) 2.2 Outline the steps to be undertaken when using the graphic linear programming (5) 2.3 Determine, using graphic linear programming the production combination for Zek Ltd which maximises daily profit. (Draw the graph in your answer book. Ensure that you label the graph comprehensively and clearly.) (17) Solving algebraically, verify your answer in 1.3. (2) Calculate the production mix which will achieve the desired daily profit of R10 000 (8) Outline some key assumptions and limitations pertaining to linear programming (5) 2.4 2.5 2.6 [15] QUESTION THREE Assess in detail pricing policies and also provide a discussion of when it will be appropriate for businesses to use each type of pricing policy [15] QUESTION FOUR Evaluate the limitations of financial performance measures END OF QUESTION PAPER h o