Q.2 SECTION A The Engineering Manager in XYZ Ltd is responsible for maximising the profit from four product lines A,B,C and D. They have been provided with the following information. A B. D Direct materials () 200 160 180 140 Direct labour (hrs) Fabrication Assembly Finishing 5 2 4 4.5 2 3.5 6 1.5 2.5 5.5 2 3.5 600 850 Selling price per unit () 1000 900 240 190 240 230 Max.sales for the period (in units) 200 190 180 210 Budgeted production (in units ) Additional information is also provided: 1. 2. There are no closing stocks. The labour rate for fabrication and finishing is 20.00/hr. The labour rate for assembly work is 14.50/hr. The skilled labour required for the finishing process is in short supply although there is just enough to meet the current budgeted production. 3. Required: a) Prepare a statement showing the contribution from each product based on the budgeted production. (8 marks) b) (2 marks) Calculate the contribution per unit of limiting factor. grineling Labour how c) Prepare a statement showing the maximum total contribution that can be obtained. Explain your rationale. (10 marks)