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question B and C please. (5 marks) Resolution Ltd Resolution Ltd manufactures three products: Product RR, Product SS and Product TT. The contribution per unit

image text in transcribedquestion B and C please.

(5 marks) Resolution Ltd Resolution Ltd manufactures three products: Product RR, Product SS and Product TT. The contribution per unit of the respective products is as follows: Product RR Product SS Product TT 450 650 350 Contribution per unit BEA2017 Page 2 of 8 Assignment brief 2020/21 The manufacture of these products involves two processes: Process Reso and Process Lution. The processing time requirements of each product (in hours) are as follows: Product RR Product SS Product TT Process Reso Process Lution 35 20 55 35 40 45 The monthly processing time of Process Reso and Process Lution is limited to 84,975 hours and 50,050 hours respectively. The sales of Product RR are limited to 800 units per month due to regulatory restrictions. The objective of the company is to maximise contribution. Required: a) Determine the optimal production plan using the simplex method. You should show and clearly explain all workings. Your answer should be rounded to 3 decimal places. (22 marks) b) Regulatory changes allow Resolution Ltd to sell an additional 500 units of Product RR per month provided that a levy of 50 is paid for every additional unit sold. The company is confident that there is demand for the additional units of Product RR. Advise Resolution Ltd whether the production of the additional 500 units of Product RR per month should be undertaken. (4 marks) c) Resolution Ltd has been informed by a supplier that there will be a price hike for some materials. As a result, the variable cost of Product SS will increase by 30 per unit. Assess the impact of this change in variable cost on the monthly total contribution of Resolution Ltd. (4 marks)

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