You are provided with the following information relating to the sales, estimated demands and production costs for each bench, table and chair 60 45 in units 10 E2 13 E4 E7 Bench Table Chair Estimated selling price 71 Maximum demand 1,800 1,500 3,000 Raw materials timber 12 - metal fittings - fabric Packing Each bench, table or chair involves in two separate stages of processing, 1. The timber is machined, finished and assembled. Metal Fittings are foed. 2. The products are painted and varnished to packaging in polythene and cardboard. Labour costs are based on the following estimated time (in minutes) required for each processing stage: 6 E2 2 E1 Stage 1 Stage 2 20 180 150 60 Benches Tables Chairs The following rates for labour are applied: 60 40 Stage 1 Stage 2 per hour 3 There are a maximum of 10,500 hours of labour available for stage 1. Required: (a) Advise the management the maximum output for each product and the total contribution of the proposed optimal production plan. (14 points) (b) Explain clearly the basis method used in (a). (4 points) (c) Identify two factors that should be considered before a final decision is made (2 points)