Sharra Ltd manufactures three products, the details of which are as follows:

Crew V neck Polo

Selling Price BGN per unit 50 45 60

DM per unit 10 8 12

DL per unit 9 15 12

Other variable costs per unit 6 3 7

Monthly demand 160 180 140

Labor hours per unit 3 5 4

Labor is very specialized and is limited. Sharra only has 6 workers who can do this job. Each of them works for 140 hours per month

Required:

a) Given the restricted labor work force available, which combination of products (per month) should be manufactured if the business is to produce the highest profit AND what total contribution margin would this generate?

b) What options could Sharra Ltd consider to increase the labor force?

c) How would this change if they can find two additional workers?