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Readymix Ltd Readymix Ltd manufactures three products: Product RR, Product DD and Product MM. The contribution per unit of the respective products is as follows:

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Readymix Ltd Readymix Ltd manufactures three products: Product RR, Product DD and Product MM. The contribution per unit of the respective products is as follows: Product RR Product DD Product MM Contribution per unit 420 320 620 BEA2017 Page 2 of 8 Assignment brief 2021/22 40 The manufacture of these products involves two processes: Process Ready and Process Mix. The processing time requirements of each product (in hours) are as follows: Product RR Product DD Product MM Process Ready 25 50 Process Mix 35 40 55 The monthly processing time of Process Ready and Process Mix is limited to 50,000 hours and 80,000 hours respectively. The sales of Product RR are limited to 900 units per month due to regulatory restrictions. The objective of the company is to maximise contribution. b) New regulations stipulate that Readymix Ltd will be allowed to sell an additional 800 units of Product RR per month provided that a levy of 25 is paid for every additional unit sold. The company is confident that there will be demand for the additional units of Product RR. Advise Readymix Ltd whether the production of the additional 800 units of Product RR per month should be undertaken. (4 marks)

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