Whizz Cycles manufactures and sells electric cycles in a variety of engines and configurations. The company has recently launched two new models: W10 and W20. The suggested retail price is $21,500 for W10 and $36,500 for W20. Note that because construction of cycles is continuous, portions of bikes can be constructed each month (solution not limited to integers). It takes 9.5 labour-hours to assemble each W10 plus 0.8 hours in the packaging department for the W10 model. Each W20 model requires 10.5 hours of assembly and 2.2 hours in packaging. For the next month, the plant manager can dedicate up to 1100 labour-hours for assembly and up to 195 labour-hours for packaging. The hourly labour costs are $42.50 per hour for assembly time and $17.50 per hour for packaging. The costs for the parts used for assembly are $5,800 for the W10 and $6,850 for the W20 model. The number of already committed and anticipated orders far exceeds management's forecast for both models. Management has met with the marketing department, and they have decided that at least 25% of the total production must be W20 models. Furthermore, they have decided that at least 25 of the W20 models must be fabricated in their first production month.

Requirements:

c)Suppose Whizz can buy additional packaging time at the same rate. Should it do so? State why or why not.(assuming they don't want buy any additional resources other than packaging) (2 marks)

d)Suppose Whizz can buy additional assembly time at the same rate. Should it do so? State why or why not.(assuming they don't buy any additional resources other than assembly) (2 marks)