AG is in the process of reviewing 10 proposals for new project, but the resources only available to work on new project for maximum 46200, hours during the year. The incremental profit and constrained resource required for the proposed project are listed below:

Proposed Project Incremental Profit Amount of the Constrained Resource Required

Project 1 7.700.000 8.800

Project 2 5.500.000 11.000

Project 3 825.000 6.600

Project 4 4.950.000 6.600

Project 5 3.300.000 13.200

Project 6 2.750.000 4.400

Project 7 2.200.000 2.200

Project 8 660.000 4.400

Project 9 1.650.000 4.400

Project 10 880.000 4.400

30.415.000 66.000

Required:

a) Which of the proposed project should the company accept this year?

b) What would be the total incremental profit under your plan?

c) What is your opinion, why company's revenues and costs differ across customer?