Shoes R Us manufactures three (3) types of footwear for the avid sports person. The relevant information is presented in the table below. Joggers Selling Price Direct Material ($30 per meter) Direct Labour ($16 per hour) Machine Hours ($30 per Mhr) Fixed overhead allocated at $8 per direct labour hour Estimated demand per period $ 105.00 15.00 24.00 15.00 12.00 Machine hours Additional Information Administration Expenses for the period Marketing expenses 2,400 Track Shoes Required 1. Compute the optimum product mix for Shoes R Us. 2. Compute the operating Income for Shoe R Us. $145.00 30.00 36.00 22.5 18.00 The resources available for the next production period is given below: Direct Materials 7,200 meters Direct labour 6,900 hours 3,600 hours 1,250 $88,000 $ 74,126 Hiking Boots $175.00 37.50 40.00 30.00 20.00 1,700 (11 Marks) (4 Marks) Part B (10 Marks) Budgets are critical to an organization's profit planning and performance evaluation system. Discuss this statement utilizing the relevant budgeting methods discussed in the (10 Marks) course.

Shoes R Us manufactures three (3) types of footwear for the avid sports person. The relevant information is presented in the table below. The resources available for the next production period is given below: Required 1. Compute the optimum product mix for Shoes R Us. (11 Marks) 2. Compute the operating Income for Shoe R Us. (4 Marks) Part B (10 Marks) Budgets are critical to an organization's profit planning and performance evaluation system. Discuss this statement utilizing the relevant budgeting methods discussed in the course. (10 Marks)