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Maxilight Ltd is a company making home lighting products. As well as their range of basic products, a special unit with complex machines makes 2

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Maxilight Ltd is a company making home lighting products. As well as their range of basic products, a special unit with complex machines makes 2 different styles of security light with movement activation features. [The "Home Security Light" and "The Business Security Light". The Business Security Light is more powerful and robust. For the forthcoming month, two of the components "Neon 23" (1 bulb) and Activation unit "X79" used by both products are in short supply due to mistakes in quality at one their supplier's plant which means that the components from that supplier cannot be accepted. Due to secrecy concerns Maxilight Ltd do not wish to use other suppliers in the short term. There is also a shortage of skilled labour time due to increases in demand and a short-term inability to find skilled staff. All other resources needed to meet demand are available. Labour is regarded as a variable cost. The following information relates to the price and variable costs of the two products: Home security Light Business security Light Per unit Per unit Unit selling price 20.00 35.00 Neon 23 - 2.20 per bulb 1 bulb 2 bulbs Activation unit X79 - 3 per unit 1 unit 1 unit Other materials 3.70 8.00 Packaging 0.20 0.20 Skilled Labour time 15 per hour 4 minutes 2 minutes Unskilled labour 9 per hour 6 minutes 6 minutes Monthly demand 60,000 lights 100,000 lights The limited resources available during the month are: Neon 23 (1 bulb) 60,000 units Activation unit X79 40,000 units Skilled labour time 140,000 minutes Required: a) Calculate the contribution earned by one unit of the Home Security Light and one unit of the Business Security light

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