Question 1 Barokah SB is in the business of manufacturing health supplements. Products are classified into various categories for example weight management, heart health, skincare and brain and memory support. Recent market survey indicates that heart health category is the most demanded product. This category has four products. Magnesium, Inositol, Omega-3 and fish oil. The manufacturing process of these four products uses same machine. The table below shows standard cost of card for the four products. Products Standard cost per bottle: Direct Materials Direct Labours Variable Overhead Selling price per bottle Omega- Inositol Magnesium Fish 3 Oil 12 12 14 16 8 10 14 16 4 4 10 10 60 66 90 86 Production requirement and demand is as follows: Products Labour hours per bottle Machine hours per bottle Maximum demand per month (bottles) Omega- Inositol Magnesium Fish 3 Oil 2 2 4 4 6 8 10 8 300 200 150 200 During the month of May, the machine is due for its periodic maintenance. This reduces the machine hours available to 4,200 hours only. Budgeted fixed overhead is RM5,000 per month. Required: a) Calculate the contribution margin per unit for product Magnesium, Inositol, Omega-3 and fish oil. (8 marks) b) Prepare the optimum production mix for the month of December 2021 based on the limiting factor identified in (a) above c) Calculate the optimum profit for Barokah Sdn Bhd d) (1.5 marks) (2.5 marks) In order for the company to meet the quantity demand by its customers, the production manager suggested to buy the product Magnesium from other supplier at a cost of RM52 per bottle including transportation. The Magnesium need to be repackaged at a cost of RM3 per bottle before it could be sold. Advise the company on the production manager's suggestion. (5 marks) e) Explain briefly two (2) issues that should be considered in a make or buy decision. (5 marks) f) Discuss the difference between "opportunity cost" and "sunk cost". (3 marks) Total (25 marks)