Other Cloth Limited (OCL) makes and supplies two products to retailers around the world. Two of the products the cloak and robe require the same resources but in different quantities. Given below are details of the forecast revenues and costs as well as planned resource requirements for the two products.

The companys budget has already been prepared. This was based on the production and sales of 40,000 cloaks and 52,500 robes.

In response to rumors of potential shortages in resources, the company is reviewing its operational plans to determine the most profitable course of action. The following resource constraints are expected:

Required:

1. (a) Based on the current planned production quantities and selling prices, advise OCL (presenting suitable calculations) on the most profitable product mix (with limited resources).

rIxEU cUsls UIE NUSEU UII IIELIIY LIE NUUYEL. \begin{tabular}{c|c} & Maximum available \\ \hline Direct materials & 50,000 square meters \\ Direct labour & 60,000 hours \\ Machine & 50,000 hours \end{tabular}