The Build it Group was born from humble beginnings and has grown phenomenally to more than 390 stores across Southern Africa, supplying quality building materials and serving communities for more than 35 years. As a division of the SPAR Group Limited South Africa, Build it operates on a voluntary trading model of over 10 000 employees across a chain of individually owned stores throughout South Africa, Namibia, Swaziland, Lesotho and Mozambique. The Build it Group has two products- Product A and product B. Product A Product B Selling Price N$200 N$250 Cost of materials N$70 N$85 Fixed costs N$20 N$20 Variable costs N$60 N$75 Profit N$50 N$70 Machine hours per unit 1 1.5 Demand 10 000 8 000 Total machine hours available with the Company are 18 000 hours. To fulfil the entire demand, the Company requires 22 000 hours (10 000 1 + 8 000 1.5). Thus, the management must decide on an optimum mix of production to maximize profitability.

Determine the total costs for the Build it Group