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Question 5 ( 1 5 marks; 2 7 minutes ) Denel Munitions produces three products, A 1 1 0 , B 3 8 2 and

Question 5(15 marks; 27 minutes)
Denel Munitions produces three products, A110, B382 and C657. Unit data for the three products is as follows:
\table[[,Product Information],[A110,B382,C657],[Selling price,R840,R560,R700],[Variable costs:,,,],[Direct materials (Sulphide),R240,R150,R90],[, Labour and other costs,R280,R270,R400],[Quantity of Sulphide per unit,8 kg,5 kg,3 kg]]
All three products use the same direct material, Sulphide. The demand for the products far exceeds the direct materials available for the current production. Sulphide costs R30 per kilogram and a maximum of 5000 kilograms is available each month. Denel Munitions must produce a maximum of 400 units of each product, and these demand maximums include a contract for the delivery of 50 units of each product to an important client.
Required:
5.1 How many units of each product should Westford produce?
(12)
5.2 Calculate the total contribution earned for the optimal production mix.
(3)
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