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Read the following information to answer questions 3.1 - 3.6. Summer Enterprises produces Breeze and Storm cooling fans. Selected data related to each product is
Read the following information to answer questions 3.1 - 3.6. Summer Enterprises produces "Breeze" and "Storm" cooling fans. Selected data related to each product is as follows: Breeze Sales price per unit $200 Direct materials per unit $60 Direct labour per unit $30 Variable overhead per unit $10 Direct labour hours per unit 2 Storm $300 $70 $35 $15 3 There is a maximum of 24,000 direct labour hours available each year. Question 31 1 pts Question 3.4 If the company believes that there is sufficient demand for up to 10,400 Breeze and 7.200 Storm cooling fans each year, how many Breeze cooling fans should be manufactured in order to maximise profits? Question 32 1 pts Question 3.5 If the company believes that there is sufficient demand for up to 10,000 Breeze and 7,200 Storm cooling fans each year, how many Storm cooling fans should be manufactured in order to maximise profits? Question 33 2 pts Question 3.6 Summer Enterprises has been approached by the Torrance Distributions to supply 5,000 Breeze cooling fans, at a price 20% lower than the normal price. If satisfied with the products, they are proposing to purchase further cooling fans on an ongoing basis in the future. Apart from the lower sales price, explain two other considerations Summer Enterprises should review before deciding on whether to accept the special order. Clearly indicate each consideration in the following format: Consideration 1: ....... Consideration 2
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