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Question 2 (a) A company manufactures and sells three products with the following selling prices and Coals: Product X RM per unit RM per unit

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Question 2 (a) A company manufactures and sells three products with the following selling prices and Coals: Product X RM per unit RM per unit RM per unit Selling price 12.00 10 00 Variable costs 7.30 6.50 5.00 Fixed costs 3.50 3.00 2.50 Availability of direct labour will be limited to 5,090 hours in the next period. Other resources will be available as required. Output per direct labour hour is as follows: Product X 10 units Product Y 12 units Product Z 15 units Demand for the three products in the next period is expected to be; Product X 15,000 units Product Y 24,000 units Product Z 30,090 units Required: For the next period: (i) Demonstrate that direct labour will be the limiting factor, (3 marks) (ii) Determine the production schedule that will maximize profit and calculate the amount of the profit. (12 marks) (b) A company produces various type of fruit juice, Its full capacity of production is 5,090 cartons per month, In October the factory is not expected to operate at full capacity with only 4,100 cartons. The company has received a special order for banana juice, The order is for 400 cartons, which would be priced at RM1.20 each, Variable costs are expected to be RM0.80 per carton. Required: Give calculations to support a conclusion as to whether or not to accept the special order. (5 marks) [20 Marks]

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