PLZ PLZ HELP

Required:

1. Calculate the amount of materials and the amount of labour needed to fully meet demand and identify the scarce resource.

2. Identify the optimal production plan for July 2022.

3. Calculate the profit made using that production plan.

A company manufactures two products, the A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only variable costs. Product details are as follows: A B Selling price 30 40 Material costs 10 Skilled labour costs 8 12 15 Materials cost 2 per kg. Skilled labour costs 10 per hour. For the month of July 2022 maximum demand is for 2,000 units of A and 2,500 units of B. In July 2022 there is a restriction on the availability of both material and skilled labour. There are 25,000 kgs. of Material available and 18,000 hours of skilled labour. Fixed costs have been identified as 25,000 per month