Globe Enterprises is a very rapidly expanding company with the demand for each of its four main products having risen rapidly over recent years. In planning for next year Globe Enterprises developed an initial budget assuming that it would operate at a maximum capacity of 30,000 direct labour hours (labour hours being its main production constraint). At this level of production all fixed overheads would be recovered. Aspects of this initial budget are as follows 6,00012 5,400 4,200 d (litres) price per litre 30.00 E55.00 35.00E28.00 s per litre t labour (E12 per hour) 9.00 18.00 12.00 6.00 t materials overhead (25% direct | 2.25 4 50 | 3.00 | 1.50 r cost Fixed overhead (100% direct 9.00 18 12.00| 6.00 r cost) otal cost per litre 26.75 52.00 E31 Subsequent to the development of the initial budget it is realised that the company will only have 25,000 labour hours available for the coming perio management has decided it does not wish to increase the planned selling prices d. In addition Requirement (a) Given that only 25,000 labour hours will be available determine the optimal production plan for the period and calculate the profit that this would yield 16 Marks (b) Given the present labour restriction, suggest any possible ways in which Globe Enterprises might improve its overall profitability 9 Marks Total 25 Marks