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Jenny owns a small pottery business where she makes and sells hand - made pottery products for cash. There are enough factors of production to
Jenny owns a small pottery business where she makes and sells
handmade pottery products for cash.
There are enough factors of production to meet the demand for the week except the labour hours.
At present she only works hours a week producing pottery products. She also serves customers in the shop.
The following information is available for the four pottery items produced and sold.
The table shows information for one item of each product.
Product Pot Vase Mug Plate
Clay material used grams g g g g
Labour time required minutes minutes hour minutes
Selling price
Material cost per unit
Labour cost per unit
Weekly demand units
Required
a Calculate the total amount of kilogramme needed to produce the total weekly demand
units grams equals kilogram
b Calculate the number of labour hours required to meet all the demand for all four
pottery products for one week.
b Explain the term limiting factor.
c Calculate the contribution for one item of each of the four pottery products.
d Calculate the order of production of the four pottery products required to maximise
profits each week.
e Calculate the quantities of production of each pottery product that would maximise profit
each week.
The fixed cost for the month is The business operates weeks for the month
f Calculate the profit per week for Jennys business.
Please show necessary working
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