QUESTION Casting Ltd produces two products, the 82 and the A40. Budgeted data relating to these products on a unit basis for January 2021 is as follows: Selling price Direct materials Direct labour Selling and administration B2 R 2.1 200 60 20 40 100 The selling and administrative costs are 50% variable. The fixed portion has been calculated based on last month's sales of 300 units of B2 and 400 units of A40. Machining Assembly A40 R Each unit of product incurs costs of machining and assembly. The total capacity available has recently been increased by modifications made to the machinery. In January 2022, the capacity is budgeted to be 1 000 hours of machining and 1500 hours of assembly. B2 The capacity cost is fixed at R12 000 and R20 000 respectively for the month, regardless of the level of usage attained. 190 30 25 30 The number of hours required in each of these departments to complete one unit of output is as follows: 1 2,5 *** A40 22 In terms of special controls recently introduced by the Government, selling prices are fixed at the above prices. The maximum demand for either product in January 2022 is 500 units Required: Calculate Casting's optimal production plan for January 2022 and the profit earned. (20)