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(Limiting Factor-optimal production plan) Muuths Bhd currently produces four products (calculators) namely BWiz, GFast, ESmart and SSleek. Learning from the past year, the company is

(Limiting Factor-optimal production plan)

Muuths Bhd currently produces four products (calculators) namely BWiz, GFast, ESmart and SSleek. Learning from the past year, the company is planning its production mix for the coming period. The following data is provided by the companys accountant:

BWiz

GFast

ESmart

SSleek

Unit selling price (RM)

19

25

40

50

Labour cost (RM)

6

12

18

24

Materials cost (RM)

9

9

15

16

Maximum demand (units)

1000

5000

4000

2000

Muuths Bhd current labour hourly rate is RM6 per hour and workers are only able to provide a maximum of 12000 hours for the period under consideration.

Required:

  1. Determine the optimal production plan for Muuths Bhd
  2. Compute the total contribution earned by Muuths Bhd from the above production plan

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