QUESTION 4 4.1 REQUIRED Use the information given below to calculate the expected total profit or loss from the special order. INFORMATION A company produces a single product called "Choc'. The normal selling price is R45 and the unit manufacturing costs are as follows: 18 Direct materials Direct labour Overheads 50% of the manufacturing overheads are variable. A sales commission of 5% applies to sales at the normal selling price only. Administrative costs are fixed and amount to R38 250 per month. The monthly production capacity is 33 000 units. The sales level for the past few months has been at a steady level of 27 000 units per month A special order for 5 500 units of Choc at a price of R40 each has been received. The products have to be delivered to this customer at a cost of R7.50 per unit. 4.2 REQUIRED Use the information provided below to determine the optimum mix of products that should be produced Also indicate the total contribution that would be earned by Everest Limited on each product. INFORMATION Everest Limited has only 2 800 labour hours available to produce three products viz. Product X, Product Y and Product Z. The following information relates to the expected demand and the productive capacity for the next month in respect of the three products that it manufactures: Sales price per unit Variable costs per unit Estimated sales demand Required labour hours Product X R60 T R36 600 units 600 hours Product Y Product Z R75 TR90 R30 R60 600 units 600 units 1 800 hours 1500 hours 1