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Pastels Ltd produces three brush sets; the artists set, the painters set and the make-up...

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Accounting

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Pastels Ltd produces three brush sets; the artists set, the painters set and the make-up set. The following data for each brush is available for the next quarter: Demand sets (units) 150 300 350 Artist Painters Make up Sale Revenue per unit 43 35 25 Variable costs per unit 37 27 16 Allocated Fixed costs per unit 7 2 4 Profit per unit (1) 6 5 All brush sets use animal hair as follows: Artist Painters Make up Hair per set (grammes) 12 20 36 State the total maximum price that Pastels would be prepared to pay a competitor for any animal hair inventory they have, in order to fulfil demand for the quarter

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