(i) Shanghigh Ltd currently makes semiconductors for its clients. A component of the semiconductor costs Rs 200 (variable cost) to make and the current production is 10,000 components per year. Fixed costs associated with items is Rs 250,000 per year (fixed cost cannot be eliminated within the next 12 months even if the component is purchased form an outside supplier). Bulk Ltd. has offered to supply component to Shanghigh Ltd at a price of Rs 220 per unit. Should Shanghigh decide to purchase from Bulk Ltd. Show relevant computations. Give qualitative factors that you may pay attention to. (40 marks) 5 (ii) Cobbler Ltd, a shoe manufacturer has analyzed profitability of its three products: The company has sold off three of its machines and as a result is left with a limited machine capacity of 1,000 machine hours available to conduct manufacturing work. Machine hours required to produce different products are as follows: Demand for the products for the coming year is expected to be as follows. ( ) Show the best allocation of the limited machine hours among the three products in order to maximize profits. ( ) Compute the total contribution according to the production plan determined in ' '. (i) Shanghigh Ltd currently makes semiconductors for its clients. A component of the semiconductor costs Rs 200 (variable cost) to make and the current production is 10,000 components per year. Fixed costs associated with items is Rs 250,000 per year (fixed cost cannot be eliminated within the next 12 months even if the component is purchased form an outside supplier). Bulk Ltd. has offered to supply component to Shanghigh Ltd at a price of Rs 220 per unit. Should Shanghigh decide to purchase from Bulk Ltd. Show relevant computations. Give qualitative factors that you may pay attention to. (40 marks) 5 (ii) Cobbler Ltd, a shoe manufacturer has analyzed profitability of its three products: The company has sold off three of its machines and as a result is left with a limited machine capacity of 1,000 machine hours available to conduct manufacturing work. Machine hours required to produce different products are as follows: Demand for the products for the coming year is expected to be as follows. ( ) Show the best allocation of the limited machine hours among the three products in order to maximize profits. ( ) Compute the total contribution according to the production plan determined in