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Required: (a) Determine the production plan which will maximise the weekly profit of PDR plc and prepare a profit statement showing the profit your plan

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Required: (a) Determine the production plan which will maximise the weekly profit of PDR plc and prepare a profit statement showing the profit your plan will yield. [10 marks] (b) The marketing director of PDR plc is concerned at the company's inability to meet the quantity demanded by its customers. Two alternative strategies are being considered to overcome this: (i) to increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overhead costs would be expected to increase in proportion to labour costs. (ii) to buy product B from an overseas supplier at a cost of 19 per unit including carriage. This would need to be repackaged at a cost of 1 per unit before it could be sold

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