Part 1: Smith Ltd Smith Ltd has three products all of which require the same production facilities. Financial data on the three products are as follows Selling price per unit () Variable Cost per unit (E) Share of fxed overheads per unit 140 80 E per unit 180 100 Eper unit 240 90 20 20 20 Monthly demand in units (units) 90 100 80 Machine time per unit (hours) 5 10 15 The same machine is used to produce all three products and hence, fixed cost is not affected. Machine time is limited to 850 hours per month Required: With achieve the highest profit for the company supported workings, show which combination of products to be produced to (Total 8 marks)
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