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Using the information given, calculate the optimum production required to provide Bestlog Sdn Bhd with the maximum profit achievable from the limited direct material available
Using the information given, calculate the optimum production required to provide Bestlog Sdn Bhd with the maximum profit achievable from the limited direct material available in 2021.
Calculate the total profit that can be achieved from the production calculated in part (a).
Provide TWO (2) possible ways of overcoming shortage of direct material and direct labour hours
Bestlog Sdn Bhd manufacturer three automobile security devices. The budgeted unit cost and resources requirement sof each if these devices are tabled below. Products and cost per unit Direct Material (RM2 per kg) Direct Labour Variable Overhead Fixed Overhead Selling price Sting RM 4.00 5.00 4.00 4.50 20.00 Hailer RM 15.00 10.00 7.50 10.50 50.00 Vibra RM 12.00 8.00 8.00 6.00 40.00 Cobra RM 10.00 8.00 6.00 6.00 30.00 Bestlog Sdn Bhd believe that there will be a shortage of direct material estimated to be a limit of 40,000 kg. Their estimated maximum demands in 2021 are: Sting 4,000 Hailer 2,000 Vibra 2,000 Cobra 1,500 Required: Using the information given, calculate the optimum production required to provide Bestlog Sdn Bhd with the maximum profit achievable from the limited direct material available in 2021. (16 marks) b. Calculate the total profit that can be achieved from the production calculated in part (a). (5 marks) Provide TWO (2) possible ways of overcoming shortage of direct material and direct labour hours (4 marks) (Total: 25 marks)
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