Potsanyane (Pty) Limited manufactures three products, Scones, Cake, Biscuits and sells them on the local market. The following information is available: Products and costs per unit in Maloti: Products Manufacturing costs: Scones Cake Biscuits Material 16 Labour 32 24 32 Variable overheads 28 48 15 Total variable costs 8 16 63 Selling price 68 88 96 128 144 Demand in units 1600 800 960 Material usage in kilograms 3.2 6.4 4.8 Labour time in hours 16 14.4 24 Material available 12 288 kg Labour time 65 000 hours These products can also be imported from Swaziland at the following prices: Products Cost per unit Required: Scones Cake Biscuits M72 M96 M112 (a) Without making use of the import opportunity, determine the most profitable mix and calculate the total contribution. (b) (c) (12 marks) Making use of the import opportunity, determine the differential contribution per (6 marks) product and rate the products in order of profitability. Assuming Potsanyane (Pty) has a highly valued customer who has a minimum demand of 500 cakes; re-compute the quantities of the three products to be produced by the company within the existing capacity constraints. (4 marks) (d) (3 marks) State three ways in which linear programming may be useful for managerial planning, decision making and control activities. Total marks (25 marks)