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QUESTION ONE [40] Zek Lid assembles heavy industrial switchboxes. Hitherto, Zek Ltd has assembled only one ype, but recently a decision was made to expand

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QUESTION ONE [40] Zek Lid assembles heavy industrial switchboxes. Hitherto, Zek Ltd has assembled only one ype, but recently a decision was made to expand the product range into two types. The following data pertains to each switchbox: Zek Lid's total general fixed costs per day amount to R27 000 . The organisation operates its factory 24 hours per day and this equates to one operating cycle. Each swilchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows: Zek Ltd is limited to 600 assembly hours and 400 testing hours in one operating cycle. Management is anious to ascertain the following but are unsure as to how to determine these factors: 1. The most profitable daily (that is, in one operating oycle) production combination. 2. The minimum number of units which should be produced in one operating cyole if Zek Lid wishes to achieve a total dally profit of R 10000 Required 1.1 Explain why linear programming is appropriate in determining the optimal production solution for Zek Lid. 1.2 Outine the steps to be undertaken when using the graphic linear programming method. (5) 1.3 Determine, using graphic linear programming, the production combination for Zek LAd which maximises daly profit. (Draw the graph in your answer book. Ensure that you label the graph comprehensively and clearly.) 1.4 Solving algebraically, verify your answer in (C). (2) 1.5 Calculate the production mix which will achieve the desired daty proft of R10 000. (8) 1.6 Outine some key assumptions and limeations pertaining to linear programming

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