PDR Co. manufactures 4 products using the same machinery. The following details relate to its 4 products.

	Product A	Product B	Product C	Product D
	$ per unit	$ per unit	$ per unit	$ per unit
Selling price	28	30	45	42
Direct material	5	6	8	6
Direct labor	4	4	8	8
Variable overhead	3	3	6	6
Fixed overhead *	8	8	16	16
Profit	8	9	7	6
Labour hrs.per unit	1	1	2	2
Machine hrs.per unit	4	3	4	5
	Units	Units	Units	Units
Maximum weekly demand	200	180	250	100

*Absorbed based on budgeted labor hours of 1,000 per week.

There is a maximum of 2,000 machine hours available per week

Required:

1. Determine the production plan which would maximize the weekly profit of PDR Co. (7 marks)
2. Prepare a profit statement showing the profit your plan would yield. (3 marks)