Question: Please help to solve problem, accounting and finance problem. requirement statement with explanation. The management of a business is concerned about its inability to obtain

Please help to solve problem, accounting and finance problem. requirement statement with explanation.

 Please help to solve problem, accounting and finance problem. requirement statement

The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection for its three services, Alpha. Beta and Gamma. Alpha Beta Gamma Total 000 000 000 000 Variable costs Materials 6 4 5 15 Labour 9 6 12 27 Expenses 3 2 2 7 Allocated fixed costs _6 E 2 g Total cost 24 2? 31 82 Prot E _2 _2 Sales revenue Q g E 101 The amount of labour likely to be available amounts to 20,000. All of the variable labour is paid at the same hourly rate. You have been asked to prepare a statement of plans ensuring that at least 50 per cent of the budgeted sales revenues are achieved for each service, and the balance of labour is used to produce the greatest profit. Required: (a) Prepare a statement, with explanations. showing the greatest profit available from the limited amount of skilled labour available, within the constraint stated. Hint: Remember that all labour is paid at the same rate. (b) What steps could the business take in an attempt to improve protability, in the light of the labour shortage

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