Question 3 (16 marks)

Mr Bean Mart produces and sales four types of toys namely Blaze (B), Pinocchio (P), Paw Patrol (PP) and Scooby (S). Information relating to the production of these toys is given as follows:

B P PP S

Sales price/ unit $200 $250 $180 $400

Materials required per unit $100 $150 $110 $220

Direct labour ($10 per hour) $40 $50 $20 $60

Variable cost per unit $20 $25 $10 $30

Monthly sales demand (Units) 500 800 1 000 400

There is a limit to the availability of labour and only 8 000 hours are available each month.

Requirement:

Determine the production mix that maximises throughput and calculate the resultant throughput of your proposed production mix. (16 marks)