What calculations were used for the solution below using the budget and information which is also below:

Stevi plc makes three types of products using high grade leather from Italy a purse, a jacket and a belt. The following budget has been prepared for next year Leather Purse Leather Jacket Leather Belt Planned sales in 120 200 900 units Machine Hours per 5 3 unit 2 E per unit E per unit f per unit Selling price E280 E190 E800 Direct Materials 60 40 500 Direct Labour 40 80 120 Variable overhead 130 25 175 Further information 1 . Planned production equals planned sales. No changes in stock levels are envisaged. 2. The total fixed production overhead of the company for the period is budgeted as $15,000. Required (a) Prepare a statement showing the contribution of each product and the overall profit expected for the period. (b) The machines are becoming less efficient and require additional repairs. This means there are only 2400 machine hours available. How much should be produced of each of the different types of watch in order to maximize the profits of Stevi, and what would the new profit figure be on the basis that fixed costs remained the same? The fixed costs will remain unchangedContribution 650 E45 ES per Unit No of Hours 5 3 2 used Contribution E10.00 615.00 E2.50 Per Limiting Factor Rank hours required 600 600 1800 if only 2400 hours Number of 600 600 1200 Hours used Number of 120 200 500 units produced Total E6,000.00 69,000.00 63,000.00 E18,000.0 Contribution Fixed Costs 15,000 Total profit E3,000.00