Question: 1 use the information provided to determine the optimum mix of components that should be produced. calculate the total contribution that would be earned by

1 use the information provided to determine the optimum mix of

1 use the information provided to determine the optimum mix of components that should be produced. calculate the total contribution that would be earned by vivo limited

5.3 Use the information provided below to determine the optimum mix of components that should be produced. Also calculate the total contribution that would be earned by Vivo Limited. INFORMATION Vivo Limited supplies component parts to firms operating in the aviation industry. The following information relates to the expected demand and the productive capacity for the next three months in respect of three components that it manufactures: Contribution per unit of output Machine hours required per unit of output Estimated sales demand Component A R36 10 hours 3 400 units Component B The machine capacity is limited to 20 000 hours for the three-month period. R30 3 hours (8 marks) 3 000 units Component C R18 1.5 hours 2 600 units

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