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ol Limited is planning its production for next year and has asked you as a cout recommend the optimal mix of vegetable production. He has

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ol Limited is planning its production for next year and has asked you as a cout recommend the optimal mix of vegetable production. He has given you the following daa year and has asked you as a cost accountant, to Product CarrotsPotatoes Mangoes Pawpaw GHC GHC GHC GHC Labour (wages) 18 Materials (seeds) 16 The Company has been experiencing fuctuating due to the severe competition from other countries especially the Caribbean countries. The 14 12 10 18 10 12 mixed fortunes for some time now. Its export base has been company has projected that its maximum demand for the coming year would be as follows: Carrots 15,000 tons Potatoes20,000 tons Mangoes Pawpaw 25,000 tons Labour is paid GHC 2 per hour and material cost GHC 2 per kilogram Selling prices has been budgeted as GHC 44, GHC 43, GHC 34 and GHC 35 respectively 12,000 tons Labour hours are limited to 364,000 hours while material is limited to 330,000 kilograms. Total Fixed Cost is estimated at GHC 600,000 a) Recommend the appropriate production mix where labour is the limiting factor b) Recommend the appropriate mix where materials are the limiting factor. 5 marks c) Calculate the total Contribution under each of the above scenarios. d) Calculate the total Profit under each of the above scenarios if fixed cost is GHC 300,000 5 marks 10 marks 5 marks under each scenario. Total 25 marks

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