The following budgeted price and unit cost information is available for 2023:

Body butterHandcream LipButter Sellingprice $16.0012.007.50 Costs: Beeswax21.500.50 Other natural seed/plant oil 1.501.250.25 Natural flavour 0.750.680.32 Labour cost2.841.670.36 ManufacturingoverheadcosNote1 321 Selling and admin costs2.461.801.20 Total cost 12.558.903.63

Profit :Body Butter 3.45

Hand cream 3.10

Lip butter. 3:87

Note 1: Manufacturing overhead costs is allocated @ $8.00/machine hour to all three products.40% of the manufacturing overhead costs is considered variable. Remaining are fixed costs.

Note 2: 10% of the selling and admin costs are variable. The remaining are fixed.

PNBC monthly machine hour capacity is limited to 1,800 hours. Monthly demand information is as follows:

Body butter Hand creamLipButter MaxDemand 500020001500Min Demand3000

Question 1: Prepare a product mix analysis. Determine the machine hours required for each of the product. Determine the ranking of the products in order of its contribution margin per constrained resource. (10 marks)

Question 2: Using the linear programming model under Solver, determine the optimal number of units of each product NBC should make and sell each month to maximize the profit.