Lovely Kids Sdn. Bhd. is a well-known local company which sells products for babies and children. The company has allocated RM 30,000 to the product safety department lead by Mr Ahmad, to innovate three types of baby carriers: wrap, backpack, and buckle. The cost for both wrap and backpack carriers are RM 300 each, while buckle carrier costs RM 400. Mr Ahmad and his team have allocated a total of 1200 hours of assembly time and 180 hours of packaging time for the carriers. The assembly hours for both wrap and backpack carriers are 15 hours each, while only 10 hours is needed for the buckle carrier. On top of that, 3 hours is required for the packaging of the buckle carrier and 2 hours each for both wrap and backpack carriers. The unit profits for wrap, backpack and buckle carriers are RM 150, RM 250 and RM 200 respectively.

a. By showing the appropriate assumptions and calculations, find the number for each baby carrier type that the company should produce to maximize its profit.

b. If the company decides to reduce the product safety department budget to RM 20,000, identify the type of baby carrier that should be produced by the company to maximize its profit.

C. On the other hand, Mr. Ahmad is trying to increase the maximum profit by increasing the budget to RM 40,000. By comparing all budgeted amounts, identify the best option for Mr. Ahmad and the number of baby carriers to be produced in maximizing the profit. Determine the impact of using three different amounts to maximize the profit. Show the appropriate steps and calculations to assist Mr Ahmad in presenting the outcome to the top management