Answer fully according to the marks .

Question 2 (20 Marks) ABC produces 3 products, X, Y and Z details of which are shown below: Selling price per unit Direct material cost per unit Maximum demand (units) Time required on the bottleneck resource (hours per unit) Y Z RM RM RM 120 110 130 60 70 85 30,000 25,000 40,000 5 4 3 There are 320,000 bottleneck hours available each month. Required: Calculate the optimum product mix each month. Answer A few simple steps can be followed: a. Calculate the throughput per unit for each product. (3 Marks) b. Calculate the throughput return per hour of bottleneck resource. (3 Marks) c. Rank the products in order of the priority in which they should be produced, starting with the product that generates the highest return per hour first. (6 Marks) d. Calculate the optimum production plan, allocating the bottleneck resource to each one in order, being sure not to exceed the maximum demand for any of the products. (8 Marks)