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QUESTION 1 Soraya Jewellery assembles pearls and crystals to make brooch sets for festive seasons throughout the year. There are three types of brooch sets,
QUESTION 1 Soraya Jewellery assembles pearls and crystals to make brooch sets for festive seasons throughout the year. There are three types of brooch sets, Diamond, Platinum and Silver. The owner of the business, Soraya gets her regular supply from a Korean dealer but recently, due to the outbreak of Covid-19, all supplies from Korea have been halted. Fortunately, Soraya has some spare pearls and crystals, that she thinks enough to last for the next six months. There are 74,700 units of pearls in stock. The following is the information related to the products. Platinum RM 175.00 Silver RM 115.00 Diamond RM Selling price per 155.00 set Variable costs 43.00 per set Usage of pearls 56 units 52.00 66.00 75 units 45 units per set 450 sets 600 sets 540 sets Demand (sets for 6 months) Required: a. Advise Soraya on which brooch set should be produced first, second and third in terms of contributing profits. b. Determine total contribution margin of Soraya Jewellery for the next six months
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