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Mweru Watipa Ltd has the following production data for the next one month. The figure relate to the full capacity level. Planned output is equal
Mweru Watipa Ltd has the following production data for the next one month. The figure relate to the full capacity level. Planned output is equal to the maximum demand per product. Product Selling price Raw material cost Direct labour cost Variable overhead cost Fixed over head cost W K 320 48 132 48 32 60 6 X K 428 112 176 36 20 84 8 Y K 200 44 66 48 16 26 3 Z K 280 80 44 36 24 96 2 Direct labour hours per unit There will be a short supply of direct labour force due to a temporal planned lock down for two weeks out of the coming four weeks. This means that only 2160 hours will be available for production rather than the usual 4320 hours. (1) If the temporal lock down measures go ahead, which products or products should be produced if profits are to be maximized
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