QUESTION FIVE Mostal Ltd makes and sells three types of electronic security systems for which the following information is available. 80 Day Scan Night Scan Nimi Scan Materials per unit 140 220 310 Manufacturing labour per 110 140 unit Installation labour per unit 48 64 88 Variable overheads per unit 32 40 56 Selling price per unit 500 640 920 Fixed costs for the period are 900,000 and the installation labour, which is highly skilled, is available for 50,000 hours only in a period and is paid at 16 per hour. Both manufacturing labour and installation labour are variable costs. The maximum demand for the product is Day Scan Night Scan Nimi Scan 4,000 units 6,000 units 3,600 units REQUIRED: a) Calculate the shortfall (if any) in hours of installation labour. (10 Marks) b) Determine the best production plan, assuming Mostal Ltd wishes to maximise profit. (15 Marks) c) Calculate the maximum profit that could be achieved from the plan in part (b). (5 Marks) d) Having carried out an investigation of the availability of labour, the company thinks that by offering 24 per hour, additional labour would become available and thus overcome any labour shortage. Based on the results from part (a, b and c), advise the company whether or not to implement the proposal. (15 Marks) e) Explain why it is important for Mostal Ltd to recognise qualitative factors when presenting information for decision making. Provide examples of qualitative factors which are relevant to the proposal in part (d). (5 Marks) (TOTAL: 50 MARKS)