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QUESTION 3 25 marks (45 minutes) David Masikela produces two different types of wooden decorative toys in his factory, namely toy cars and toy

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QUESTION 3 25 marks (45 minutes) David Masikela produces two different types of wooden decorative toys in his factory, namely toy cars and toy soldiers. The production process consists of sawing, assembly and finishing David buys his wood at N$100 per m. There is an unlimited supply of wood. The weekly capacity of the sawing department is 600 labour hours, while the assembly and finishing departments are limited to 1200 labour hours each. David has a market for 300 cars and 375 toy soldiers per week. Profit per toy is as follows: Selling price Direct materials: Wood Car N$ Soldiers NS 250.00 200.00 36.00 5 53.00 L Other 2.50 2.25 Direct labour Sawing department 15.00 B.25 600 Assembly department 30.00 24.00 1200 Finishing department 26.00 13.00 (200 Variable overheads 19.20 16.00 Fixed overheads 7.20 6.00 Profit 114.10 77.50 The cost of labour per department is as follows: Sawing department Assembly department Finishing department REQUIRED N$ per hour 10 12 13 3.2. Construct an extended model which can be solved by means of simplex method 3.3. Explain under what circumstances will preference be given to use graphical or simplex methods? TOTAL MARKS 3.1. Determine the combination of cars and soldiers that will maximise the total contribution using graphical method of linear programming Marks 18 6 1 25

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