Zek Ltd assembles heavy industrial switchboxes. Hitherto, Zek Ltd has assembled only one type, but recently a decision was made to expand the product range into two types. The following data pertains to each switchbox: Existing product Z686 (R) New product Z797 (R) Selling price per unit 8 000 6 800 Variable costs per unit: - Direct materials 6 000 5 600 - Direct labour 500 400 - Manufacturing overhead 500 200 Specific fixed costs per day 10 000 5 000 Zek Ltds total general fixed costs per day amount to R27 000. The organisation operates its factory 24 hours per day and this equates to one operating cycle. Each switchbox goes through two processes, namely assembly and testing. The number of units which can be assembled or tested in one operating cycle is as follows: Assemble Test Z686 2 6 Z797 6 3 Zek Ltd is limited to 600 assembly hours and 400 testing hours in one operating cycle. Management is anxious to ascertain the following, but are unsure as to how to determine these factors: The most profitable daily (that is, in one operating cycle) production combination. The minimum number of units which should be produced in one operating cycle if Zek Ltd wishes to achieve a total daily profit of R10 000.

2.5 Calculate the production mix which will achieve the desired daily profit of R10 000. (8)