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Question A3 Buttercup Ltd. manufactures and sells three products (R, S and T). These products are made using the same machinery. The total machining time

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Question A3 Buttercup Ltd. manufactures and sells three products (R, S and T). These products are made using the same machinery. The total machining time available each month is 10,500 hours but this is insufficient to produce all the units of R, S and T required to meet maximum demand. No inventory of these products are held. The following information is available: Product R Selling price per unit 60 Variable Cost per unit 48 Machining minutes per unit 40 Maximum monthly demand (units) 9,000 Products 75 57 54 6,000 Product T 84 63 75 3,000 (a) Calculate the monthly shortfall in machine hours. (b) Wat is the maximum contribution for Buttercup Ltd. for the Month

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