Sausage makes two products, the Mash and the Sauce. Unit variable costs are as follows.

Mash Sauce

KSH KSH

Direct materials 1 3

Direct labour ($3 per hour) 6 3

Variable overhead 1 1

8 7

The sales price per unit is KSH14 per Mash and KSH11 per Sauce. During July the available direct labour is limited to 8,000 hours. Sales demand in July is expected to be as follows. Mash 3,000 units

Sauce 5,000 units

Required Determine the production budget that will maximize profit, assuming that fixed costs per month are KSH20,000 and that there is no opening inventory of finished goods or work in progress.