M GmbH is a company which currently manufactures 3 products A, B and C. This takes place in three production stages I, II and III.

The following table shows the respective production times of the products in the individual production stages:

product	production I	production II	production III
A	2h	4h	3h
B	3h	3h	3h
C	2h	2h	2h

The respective production stages have an annual maximum capacity of production hours (h) in the amount of I = 2,400h, II = 3500h, III = 3600h. In 2020 M GmbH produced and sold a total of 300 pieces of product A, 400 pieces of B and 300 pieces of C. The sales price per piece is 5,000 for A, 6,500 for B and 5,500 for C.

The direct material costs for the production of a respective piece are made up as follows:

product	Direct costs production I	Direct costs production. II	Direct costs production. III	Direct costs- Sales(distribution)
A	300	300	400	200
B	500	500	1.000	300
C	500	500	500	250

The overhead costs of the M GmbH company are as follows.

production I	180.000
production II	350.000
production III	252.000
Rent halls	960.000
storage costs	140.000
management	190.000
borrowing costs	178.000
Distribution	250.000

The respective production stages are located in a large hall divided into three sections. The three sections 1-3 each have an area of F1 = 450 square meters, F2 = 350 square meters and F3 = 250 square meters. Production I can be found in F1, production II in F2 and production III in F3. Since production I does not fill the entire hall F1, 100 square meters are currently used as parking space for sales vehicles and 100 square meters are unused.

You will be hired to support the management as a controller of M GmbH and after a short training period you will find out that M GmbH currently has no real calculation and planning area. At the moment, decisions are often made spontaneously in the situation. In order to improve this, you will be entrusted with the following tasks and asked to prepare a corresponding report for the management.

Exercise part 4:

Due to the free space in F1, a second machine could be put into operation in production stage I, which would increase the maximum capacity of the production hours in stage I from 2,400 h to 4,000 h. Since the sales vehicle fleet would have to be outsourced, additional rental costs for a parking space of 10,000 per year would be incurred. Furthermore, stage I manufacturing overheads would increase by 120,000 and interest on borrowed capital by 50,000. Should the investment be made? How about the new maximum profit product range?

Explain your approach!

Exercise part 5:

The management is also considering adding another product D to the range, of which, according to initial estimates, up to 500 pieces could be sold at a price of 6,000. It would take up capacities in the respective production stages of I = 3 h, II = 2 h and III = 3 h per piece. The respective direct production costs would be in level I = 1,000 , II = 500 and III = 500 plus direct sales costs of 200 .

Should M GmbH introduce product D? How would the maximum profit production program change with or without the capacity expansion of task(Exercise )part 4?

What kind of Inormation should i add??????