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Syarikat Padu manufactures three different types of desk:Jati, Rubber and Rattan. Now, space is limited in the factory and there is a restriction on the

Syarikat Padu manufactures three different types of desk:Jati, Rubber and Rattan. Now, space is limited in the factory and there is a restriction on the number of machine hours available. Costs and selling price information for the financial year 1 January to 31 December 2022 for each type of desk is as follows:

Jati Desk

Rubber Desk

Rattan Desk

RM

RM

RM

Selling price per unit

1,750

1,600

1,650

Variable materials costs:

Wood and plastics

480

460

486

Screws and fixings

20

20

20

Variable labour costs

180

160

160

Variable machine costs

50

40

44

Share of fixed costs

220

240

200

Machine hours required per unit

2.5 hours

2.0 hours

2.2 hours

Sales demand in units for 2020

1350

1550

1450

Machine hours available are 4,000 hours during 2022.

Fixed costs for 2022 are expected to be RM940,000.

Required:

(b) Advise the directors of Syarikat Padu on the combination of products that should be manufactured if the business is to produce the highest profit without further expansion of the premises. Are there any unsatisfied demand?

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