1. QWE manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

Product	X	Y
	$/Unit	$/Unit
Selling Price	300	280
Direct Material A($8 per Kg)	40	32
Direct Material B($10 per Kg)	60	40
Skilled labour ($16 per hour)	64	48
Variable overhead ($6 per machine hour)	36	24
Fixed overhead	60	70
Profit	40	66

The maximum monthly demand for products X and Y is 1,600 units and 2,000 units, respectively, and this is the normal monthly production volume achieved by QWE. However, for the next year the achievable production level will be reduced due to a shortage of available resources. The resources that are expected to be available each month are as follows:

Direct material A	12,000 kg
Direct material B	13,000 kg
Skilled labour	14,000 hours
Machine time	20,000 machine hours

Required: Using linear programming (simultaneous equations method) identify the monthly production schedule and the total contribution for products X and Y that maximises the profits of QWE per month. (250 words)

[Marks: 10]