Task 2: Short Term Decision Making Gammy Furniture produces and sells specialty mattresses. Production is a machine-intensive process. The company's variable costs are direct material costs; variable machining costs; and sales commission. Martha, the owner, is planning production for the coming year and collects the following data:- Direct material cost per unit (RM) Variable machining cost per unit (RM) Estimated demand (units) 1,800 4,500 39,000 Selling Price per unit (RM) Product Nealy Tersa Pelta 3,000 2,100 800 750 500 100 600 500 200 Salespeople are paid a 5% commission on each Nealy or Tersa sold, and a 10% commission on each Pelta sold. All other marketing and administrative costs are fixed and, along with the fixed manufacturing costs, total RM8,750,000. 1. 2. Annual capacity is 50,000 machine hours, which is limited by the availability of machines. 3. Required: Variable machining costs are RM200 per hour. Gammy Furniture holds negligible inventories to minimise business risk. a. Calculate the machine hours required to satisfy the estimated demand for each type of mattress. (4.5) (4.5) c. Advise (with calculations) Martha about the most profitable production levels of the three b. What is the contribution margin per unit earned from each type of mattress? products d. What qualitative factor would Martha have to consider in this situation? Total: 20)