Software ltd, a computer accessories shop, makes three types of pen drive to be marketed on the local market. Details for each pen drive are as follows: Model 1 Model 2 Materials (Rs) 350 400 Model 3 550 Time taken to process (mins) 30 45 60 Variable Overheads 250 300 400 Unit selling price (Rs) 1500 1750 2500 Demand (per week) 400 300 160 The attributable fixed costs for this period are expected to be Rs 600,000 and these are to be absorbed into product costs on a direct labor hour basis calculated on the weekly budgeted activity of 12 technicians who work 40 hours a week. The technicians are paid Rs 160 per hour. There are no other constraints, and the present level of fixed costs will remain unchanged. An option exists to purchase all of Model 2 and Model 3 from another shop and to increase sales of Model 1 by reducing its selling price to Rs 1200. The buying-in prices are as follows: Model 2 Rs. 1550 Model 3 Rs. 2250 If Software Ltd decides to purchase either or both models from the shop, this will involve an immediate 50% saving in fixed costs. The computer accessories shop will incur Rs 5 per model bought as selling costs. REQUIRED: (a) Calculate whether all the models can be made to meet the expected weekly demand. If there is a resource constraint to overcome, decide on the product mix which will maximize profit and calculate the amount of this profit. (b) Calculate the revised profit that would result from the given option (c) Briefly explain some of the qualitative factors in a make or buy decision