Home Insert Draw Page Layout Formulas >> Tell me Comm % " Conditional Formatting v A . E Format as Table v Clipboard Alignment Number Cells Editing Font Cell Styles v D42 X V fx Prepare a short report wth your recommendations/justifications. Your B C D E F G H M N A Limiting factor A company produces three products for which budgeted information is as follows: Model Model AA BB Costs per unit: Material 112.00 168.00 Labour 29.00 21.75 Variable overhead 11.00 22.00 Total variable costs 152.00 211.75 Contribution per unit 10.00 14.00 Selling price per unit 162.00 225.75 15 Model AA The company can sell all it can produce. Model BB Legally imposed quotas restrict sales to a maximum of: 25,000 units Due to material shortage the current availability is restricted to: 82,560 kg Material cost per kg (f): 28 per kg Due to the lack of skilled labour in the market the amount of labour time cannot be exceeded beyond: 29,325 hours Direct labour is paid at the rate of (f): 14.50 per hour Fixed costs in total will amount to (f): 28,000 Required: 1 Illustrate graphically the means of determining the mix which optimises production capacity. Having drawn the graph, prove the result obtained from it using mathematical means. 2 Use the graph to identify the production plan which will maximise profit and prepare a profit statement. Prepare a short report with your recommendations/justifications. Your report should also identify three problemswhich may be encountered if the company changes to the optimum mix. Tash Data Proof Graph + Ready Accessibility: Investigate 80 ? MAR 29ave @ OFF Copy of Assessment_22_Q(AutoRecovered) (vers Insert Draw Page Layout Formulas Data Review View Automate . Tell me Arial A 27 v ab Wrap Text v General I Av. 4 v Merge & Centre v V % X V I LL D 25,00 20,000 15,000 10,000 5,000 5,000 10,000 15,000 20,000 25,000 89799 9856 + Task Data Proof Graph + Ready MX Accessibility: InvestigateACY . DAP ... Copy of Assessme AutoSave OFF Formulas Data Review View Automa ome Insert Draw Page Layout Arial v 4 Wrap em TH Paste CO V 9= Merg X V Y LE C Mathematical proof 4.00 AA 6.00 BB 82,560.00 Materials KO Labour hours 2.00 AA 1.50 BB 29,325.00 Multiply line 2 by 2.00 4.00 AA 6.00 BB 82,560.00 4.00 AA 3.00 BB 58,650,00 Therefore 3.00 BB 23,910.00 BE 7,970.00 Substitute BE in line one 4.00 AA 6.00 7,970.00 = 82,560.00 4.00 AA 47,820.00 82,560.00 4.00 AA 34,740.00 8,685.00 Therefore, in order to full utilise the productive capacity the optimum mix is: Model AA Model 8,685.00 units 7.970.00 unitsData Review View Insert Draw Page Layout Formulas Home A Arial v U v V 4 Paste X I CO Data for graph Material constraint 9 4 Mode requires of material Model BB requires of material Kg Limiting factor of 82,560 of material Therefore, it is possible to make a maximum of: 20,640 units of Product AA if no Product BB is made. 8 13,760 units of Product BB if no Product AA is made. Labour constraint Hours Model AA requires 2.00 of labour Mode requires 1.50 of labour Hours Limiting factor of 29,325 of labour Therefore, it is possible to make a maximum of 14,663 units of Mode if no Model BB is made 19,550 units of Mode if no Model AA Table for graph is made Units Units Materials AA 20,640 BB Labour 13,760 AA BB 14.603 0 19,560 Task Data Ready K Access Proof