QUESTION LIMITING FACTORS UNDER CONSTRAINTS marks
Zintambila SM Limited runs a small bakery and manufactures and sells different types of scones. The following information is available for the year ended May
tabletableButtermilksconestablePumpkinSconestableLemonGlazesconestableCoconutSconestableExpected monthlydemandunitsSelling price per unit,R R R R tableVariable production costper unitR R R R tableFixed production perunit basedon normalproduction capacityR R R R Variable selling costs,R R R R
Additional Information
A total of direct labour hours are available to the company. The company can produce buttermilk scones per labour hour, pumpkin scones per labour hour, lemon glaze scones per labour hour, and coconut scones per labour hour.
Required
a Determine the limiting factor in hours
b Calculate the contribution per limiting factor and rank the products in order of priority.
c Calculate the total contribution under the selected order of priority in b above.
