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Question 3. Gill Ltd. (max. score 10) Gill Ltd. manufactures three products, E, F, and G. The products are all finished on the same machine.

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Question 3. Gill Ltd. (max. score 10) Gill Ltd. manufactures three products, E, F, and G. The products are all finished on the same machine. This is the only mechanized part of the process. During the next period the production manager is planning an essential major maintenance overhaul of the machine. This will restrict the available machine hours to 1400 hours for the next period. Data for the three products is: Product E Product F Product G E/unit E/unit C/unit Selling price 30 17 21 Variable cost 13 6 9 Fixed production cost 10 8 Other fixed cost 1 3,50 Profit 5 2 2,50 Max. demand (units/period) 250 140 130 No inventory is held. Fixed production costs are absorbed using a machine hour rate of C2 per machine hour. 3.1. (max. score 10) You are required to determine the production plan that will maximize profit for the forthcoming period

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