Question: Presented below is data of B Ltd for next year. X Y Z Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8

Presented below is data of B Ltd for next year.

X Y Z

Selling price ($) 3.0 2.0 4.0

Unit variable cost ($) 1.0 0.8 1.2

Standard labor hours 2.5 2 3.5

Maximum sales demand (units) 300 500 400

Total labor hours available for production in a month is 1000 hours.

Requirements:

1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit.

2. If the labor hours can be increased by 100 hours, how many units of product should the company produce to maximize profit?

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