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Kindly assist with answering the attached question Question 1 ( 2 5 marks ) The Dolly Company ( DolyCo ) produces three types
Kindly assist with answering the attached question Question
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The Dolly Company DolyCo produces three types of dolls that they sell to the local market.
The three dolls namely Pony, Girly and Noku are manufactured from the same materials and
use the same grades of labour. Details of the standard cost per doll is given as follows:
Skilled labour is paid at a rate of $ per hour and semiskilled labour is paid at $
per hour. Fixed costs per year amount to N$
The forecast sales for the forthcoming period are as follows:
In a recent management meeting, it emerged that another company that recently opened is
using the same skills that DollyCo is using. As a result, some employees have left DollyCo.
For the forthcoming period, only hours of skilled labour will be available and only
hours of semiskilled labor will be available. These estimates have already considered the
possibility of overtime and these are the maximum labour times available.
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