Question 2A In the following table, demand outweighs the machine capacity capped at 32,000 hours each period. In each period, the potential sales was 8,000 units and 12,000 units for A and B respectively. Xenobe couldn't increase prices due to intense competition. Product A Product B Sales price $ $ Direct materials 22 27 Direct labour and variable overhead 10 9 Machine hours per unit 6 11 2 hours 1.5 hours $90,000 Fixed cost per period Required Calculate the profit-maximising output in each period and the profits. Note: All detailed steps MUST BE shown to obtain marks for workings. (14 marks) Question 2B A company is considering the purchase of three machines but is uncertain about the respective benefits in the future. The following Pay off(profit) table has been drawn up: Probability 30% 60% 10% Equipment Pay off $000 Pay off $000 Pay off $000 Worst Case Most Likely Best Case X 250 300 900 XX 300 375 945 WW 275 500 990 Required: Compute the expected payoff for the above. (6 marks) (Total: 20 marks)