Please assist with how the question below is down or an example because not much information is given:

A company produces two products, Alpha and Beta, details of which are as follows: Alpha Beta Material X at R5 / kg 10 20 Labour at R2 / hour 20 10 Variable machine costs at R3 / hour 12 9 Variable costs 6 6 48 45 Selling price 60 60 Demand 1 000 1 000 Material is restricted, owing to import restrictions, to 5 000kg monthly. The machine hour capacity of the company is 6 000 hours monthly. There are no opening or closing of stocks.

You are required to show, with reasons:

4.2 The minimum selling price the company could quote on a special order which required the under mentioned costs:

Material X R1 000

Labour R1 000

Machine time R150

Variable costs R400

Kind regards

Anathi

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