Questions} Looneyr Industries is a chemical coi'cipanf...r which produces and sells three cleaning products - Aqua-Clean, Micro-{Ilean and Green-Clean - to business customers, mostly to the cleaning departments of factories and large office buildings. Each product passes through four production departments. where both labour and machine times are applied. The machine and labour skills required in each department are so specialized that neither machines nor labour can be switched from one department to another. Looney [ndustries' sales department believes that next month's demand will be l units of Aqua-Clean, BUD units of Micro-Clean and Z units of Green-Clean. Their selling prices are $412, $292 and $388 respectively. Cost data for next month is estimated, as follows: Clean Direct material Variable overhead 1-5- leed overhead 1\"Variable sellin ex. enses Looneyr Industries' management is planning its production schedule for the next month. The planning is complicated, because there are labour shortages in the community and some machines will be inactive for several weeks due to necessary repairs and maintenance. Management has assembled the following information regarding available machine and labour time by department: Department Available machine capacity in machine hours Available labour in direct labour hours Machine hours and direct labour hours required per unit of each product are as follows: [cont'd on next page] OFFICE USE ONLY Question 4 (cont'd) Product Aqua-Clean Micro-Clean Green-Clean Department A: Direct labour hours 4 2 4 Department A: Direct machine 2 hours Department B: Direct labour hours 6 4 Department B: Direct machine 2 hours Department C: Direct labour hours 6 4 Department C: Direct machine hours Department D: Direct labour hours 2 4 Department D: Direct machine 4 4 hours Required: (a) Determine whether the monthly sales demand for the three products can be met by the factory. Show all workings. (5 marks) (b) What monthly production schedule (in terms of the number of hours spent on each product) should Looney Industries select in order to maximize its dollar profits? Show all workings. Explain how you selected this production schedule and calculate its total contribution margin. (9 marks) (c) Explain why this production schedule might have a negative impact on customer value. What might Looney Industries do to remedy this impact