QUESTION

Delicious Sdn Bhd manufactures one product, a ready-made paste to be used in western cuisine, called Fabulous. The product is sold nationwide to various restaurants and grocery markets. Temptation plans to sell a similar paste through its regional restaurant chain under its private label. Temptation has asked Delicious to submit a bid for a 25 000 kilogram order of the private brand paste. While the composition of the Temptation paste differs from that of Fabulous, the manufacturing process is very similar. The Temptation paste would be produced in 1000 kilogram batches. Each batch would require 60 direct labour hours and the following ingredients: