Question 2 Hamilton Ltd is a manufacturer of golf clubs, and sells to retailers in the UK. The three lines of golf clubs are: woods, irons, and hybrids. Details relating to the next month are as follows: Demand in units Woods 750 Irons Hybrids 475 1,000 Selling price/unit 16.00 13.00 13.00 Direct material grams/unit 30 22.5 26.25 Direct material cost per gram () 0.15 0.18 0.12 Direct labour hours/unit 0.5 0.6 0.7 There is shortage of direct materials in the industry. As a result, the company can only acquire 50,000 grams of direct material and has 2,000 labour hours available in a normal working month to meet demand. Fixed costs are 2,500 per month and direct labour is paid 5 per hour. Required: (a) Identify whether material or labour is the limiting factor. (1.5 marks) (b) Calculate the contribution per limiting factor for each product and rank the products accordingly. (6.5 marks) (c) Determine the production plan that will optimise the monthly contribution showing the number of units of each product produced. (2 marks) (Total marks for question 2: 10 marks)