Question 3 Knight Ltd makes four products, A1, B2, C3 and D4, and has produced the following: A1 B2 C3 D4 Demand (units) 4,000 1,000 1,800 1,500 Income 20,000 10,000 13,500 19,200 Costs Material 6,000 4,000 6,000 6,000 Labour 6,000 3,000 4,000 7,500 Variable Overhead 1,000 500 850 1,200 Fixed Overhead 3,000 2,000 2,500 3,000 Labour is paid at 10 per hour and is limited to 3,800 hours for the period. Required: (2) Calculate the shortfall in hours from the actual hours available if the company wishes to produce the units demanded as above. (5 marks) 6) Calculate and determine the ranking with labour hours as the limiting factor of production. (20 marks) (25 marks)