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You are a leader of a team that have expertise in advising organizations that are...

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Accounting

You are a leader of a team that have expertise in advising organizations that are constrained in resources so as to maximize total contribution and hence, profit.
Dee and Co. Ltd. makes two products, D and B. Available labour hours for Dee and Co. Ltd. are limited to 131,000 hours and 105,000 units of the materials are failsafe. The individual product costs are as follows:
Product D Product B
GHS GHS
Direct materials 615
Direct labour 1512
Variable overhead 23
Material and labour required:
Direct material required per unit 35
Direct labour hours required 56
The selling price per unit is GHS42 per product D and GHS39 for product B.
Sales demand in July 2022 is expected to be as follows:
Product D 9,500 units
Product B 15,000 units
Required:
Your team is to advise the management of Dee and Co. Ltd. on the most profitable production mix and ascertain the most optimal profit expectation if the fixed cost for the month is GHS240,000.

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