QUESTION FOUR [20] A company produces two products, Alpha and Beta, details of which are as follows: Alpha Beta Material X at R5 /kg 10 20 Labour at R2 /hour 20 10 Variable machine costs at R3 / hour 12 9 Variable costs co 6 48 45 Selling price Demand 60 1 000 60 1 000 Material is restricted, owing to import restrictions, to 5 000kg monthly The machine hour capacity of the company is 6 000 hours monthly. There are no opening or closing of stocks. You are required to show, with reasons: 4.1 The production plan the company should follow to maximise profits, and the contribution so arising (6) 4.2 The minimum selling price the company could quote on a special order which required the under mentioned costs: (7) Material X R1 000 Labour R1 000 Machine time R150 Variable costs R400 4.3 If Alpha and Beta can be purchased at a price of R52 and R55 respectively, indicate the optimum production and purchasing strategy that the company should follow to maximise profits. QUESTION FOUR [20] A company produces two products, Alpha and Beta, details of which are as follows: Alpha Beta Material X at R5 /kg 10 20 Labour at R2 /hour 20 10 Variable machine costs at R3 / hour 12 9 Variable costs co 6 48 45 Selling price Demand 60 1 000 60 1 000 Material is restricted, owing to import restrictions, to 5 000kg monthly The machine hour capacity of the company is 6 000 hours monthly. There are no opening or closing of stocks. You are required to show, with reasons: 4.1 The production plan the company should follow to maximise profits, and the contribution so arising (6) 4.2 The minimum selling price the company could quote on a special order which required the under mentioned costs: (7) Material X R1 000 Labour R1 000 Machine time R150 Variable costs R400 4.3 If Alpha and Beta can be purchased at a price of R52 and R55 respectively, indicate the optimum production and purchasing strategy that the company should follow to maximise profits