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When there is a limiting factor Q2 . ABC Ltd. manufactures a special table which has three components. X,Y and Z one of each being

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When there is a limiting factor Q2 . ABC Ltd. manufactures a special table which has three components. X,Y and Z one of each being required for each table. The company is working to its full machine capacity of 28000hrs per period and the machinery used is capable of making all the productionts. The tables are made in batches of 20 and the data relating to current Over the next budget period the machine capacity cannot be increased aluivugn wic assembly capacity can be increased as required. The budget for the next period is being prepared. Because sales are buoyant the purchase of one of the components is being considered and tho follnuina muntation has been received: The company has decided that only one component wil ve vougm vutside in one period. The sales director thinks that he could sell at least 50% more tables than at present and probably 75% more provided that the production capacity was available. You are required to: Rought oulude of probluevon iis uncreased by 50\%. and how many component siould be bonght. D) Recommend whech component swonld be kought outride if pvoduclion in werlared by 787 and how mann component serould be biryst When there is a limiting factor Q2 . ABC Ltd. manufactures a special table which has three components. X,Y and Z one of each being required for each table. The company is working to its full machine capacity of 28000hrs per period and the machinery used is capable of making all the productionts. The tables are made in batches of 20 and the data relating to current Over the next budget period the machine capacity cannot be increased aluivugn wic assembly capacity can be increased as required. The budget for the next period is being prepared. Because sales are buoyant the purchase of one of the components is being considered and tho follnuina muntation has been received: The company has decided that only one component wil ve vougm vutside in one period. The sales director thinks that he could sell at least 50% more tables than at present and probably 75% more provided that the production capacity was available. You are required to: Rought oulude of probluevon iis uncreased by 50\%. and how many component siould be bonght. D) Recommend whech component swonld be kought outride if pvoduclion in werlared by 787 and how mann component serould be biryst

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