1. GlowGirl manufactures two types of handbags, the Batik and the Songket, with unit contribution margins of RM9 and RM15, respectively. Regardless of the type, each handbag must go through a stitching machine. The company owns 4 stitching machines and each provides 3,000 hours of machine time per year. Each Clutch handbag requires 12 minutes of machine time and each Songket handbag requires 30 minutes of machine time. There are no other constraints.

Required:

1. Calculate the contribution margin per hour of machine time for each type of handbag.

(4 Marks)

2. Asess the optimal mix of handbags.

(3 Marks)

3. Determine the total contribution margin earned for the optimal mix.

(3 Marks)

2. Dini owns a successful flower shop called Always Blooming Sdn. Bhd.. Dini wants to expand the shop by leasing the space next door for RM1,200 per month, and adding refrigerators to keep the flowers fresh and two checkout counters so the customers do not have to wait in long lines. She currently pays RM1,000 per month for her current store space and has two refrigerators that costs her RM6,000 each two years ago. She figure out that the new refrigerators and counters will cost RM25,000. She also has determined that the current cash register that initially cost her RM1,000 two years ago and has been depreciated RM250 each year would have to be replaced with two new cash registers costing RM1,500 each. She thinks that sales would increase by RM10,000 per month. Variable costs are 40% of sales.

Required:

1. Determine the relevant and irrelevant costs of expanding into the new space.

(8 Marks)

2. Advise the cost benefits of expending the new space

(2 Marks)

please answer urgently , fast