B Question 1: Costaline Ltd makes three products: E, F and G. The machine hours, kilos of direct material and labour hours are as follows: Machine Hours Direct Materials in Kg Labour Hours E F 5 6 7 6 0.60 0.40 G 0.20 0750 The unit costs and selling prices of these three products are as follows: Direct Materials @0.50 per kg Direct Wages @7.50 per hour Variable Overheads Selling Price Sales demand for the period is limited as follows: Product E F G E F G 3.50 4.50 182020 3.00 3.00 15 882857 2.50 1.50 2 6 10 4 Quantity 4,000 6,000 6,000 Other information: It is the company policy that the production level of product E is kept at the minimum number of 1,000 units. Machine hours are limited to 100,000 hours. Direct labour hours are limited to 4,000 hours The supply of materials is unlimited for the present period. Required: a. Identify the limiting factor? (5 marks) b. Indicate the required production level for products E, F and G in order to maximise profitability. c. Calculate the maximum contribution which the company can achieve taking into consideration your answer in b. (10 marks) (5 marks) d. In the event that there is no limiting factor, explain how a problem is best solved using key factor analysis. (5 marks) (25 marks