1. Question 1 + 2 t 2 ABC Ltd produces two luxury leather accessories: bags and shoes, utilising the same resources. The selling price and resource requirements for each of these two products are as follows: - Product bags shoes -Selling price () 180 1604 Variable costs per unit: Direct labour (@25 per hour) 100 502 Direct material (@20 per kg) 40 Machine hours (@15 per hour) 152 302 . Fixed overheads absorbed 52 32 -Profit per unit 202 The company is drawing up production plans for the following 3-month period. Market | research shows that the maximum demand for the two products in the 3-month period will be 300 bags and 600 shoes. At a recent meeting to discuss the company's production plans, resources available for the 3-month period were identified as follows: 60 L L 17 Direct labour 1,800 hours t Direct materiale 2,100 kg Machine hours 1,200 hours Requir (a) Using the graphical linear programming technique together with simultaneous equations to verify your answer, calculate the optimum number of each product that ABC Ltd should produce in the next 3 months to maximise contribution. (30 marks) (b) Explain simplex linear programming and describe the circumstances when the simplex technique would be required, as opposed to the graphical one. (20 marks) [50 marks]" *