KK Limited is a company that manufactures made in Ghana clothes for the fashion industry. The fashion industry in Ghana is fast moving and consumer demand can change quickly due to the emergence of new trends. KK Limited manufactures three items of clothing: the GEM A, the GEM B and the GEM C using the same resources but in different amounts. Budgeted information per unit is as follows: Selling price GEM A $ 250 GEM B $ 40 GEM C $ 100

Direct materials ($20 per cm) GEM A $ 100 GEM B $ 10 GEM C $ 30

Direct labour ($12 per hour) GEM A $ 36. GEM B $ 12. GEM C $27

Variable overheads.($3 per machine hrs) GEM A $9 GEM B $3 GEM C $6.75

Total fixed costs are $300,000 per month. Included in the original budget constructed at the start of the year, was the sales demand for the month of March as shown below: Demand in March units GEM A 2,000 GEM B 6,000 GEM C 4,000 After the original budget had been constructed, items of clothing GEM A, GEM B and GEM C have featured in a fashion magazine. As a result of this, a new customer (a fashion retailer), has ordered 1,000 units each of GEM A, GEM B and GEM C for delivery in March. The budgeted demand shown above does not include this order from the new customer. In March there will be limited resources available. Resources will be limited to:

Direct materials 14,500 cm Direct labour 30,000 hours

There will be no opening inventory of materials, work in progress or finished goods in March. REQUIRED: Produce a statement that shows the optimal production plan and the resulting profit or loss for March.