QUESTION 1 CSC Co is a health company and selling three types of high-energy products: cakes, shakes and cookies, remote part of the world. The first of these, singa, is a super-energising rare type of caffeine. The second, launched three months ago. Each of the three products has two special ingredients, sourced from a to gyms and health food shops. Shakes are the newest of the product of the three products and were first Betta, is derived from an unusual plant believed to have miraculous health benefits. CSC Co's projected manufacture costs and selling prices for the three products are as follows: Shakes GHe 6.00 1500 Per Units Selling price Cakes 43020 GHC Cookies GHe 5.40 4.90 Costs: Other ingredients Ingredient: Betta (GHC 1.50/g) Ingredient: Singa (GHc 1.20/g) 11200x08 0.60 1.20 0.30 1.50 0.30 0.75 0.90 0.45 Variable overheads Labour (GHc 10/hour) 0.25 1.00 1.20 0.80 0.50 0.60 0.40 Contribution 2.60 1.75 1.20 For each of the three products, the expected demand for the next three month is 11,200 cakes, 9,800 cookies and 2,500 shakes. The total fixed cost for the next three month are GHC 3,000. CSC Co has just found out that the supply of Betta is going to be limited to 12,200 grams next month, prior to this, CSC Co had signed a contract with a leading chain of gyms, Encompass health to supply it with 5,000 shakes each month, at a discounted price of GHc 5.80 per shake, starting immediately. The order for the 5,000 shakes is not included in the expected demand levels above. Required: a) Assuming that CSC Co keeps to its agreement with Encompass health, calculate the shortage of Betta, the resulting optimum production plan and the total profit for the next month. (10 marks) b) One month later, the supply of Betta is still limited and CSC Co is considering whether it should breach its contract with Encompass health so that it can optimize its profit. Discuss whether CSC Co should breach the agreement with Encompass health. Note: No further calculations are required: (5 marks) (Total 15 marks)