QUESTION $5$

$(20$ Marks$)$

$5\mathrm{.}1$

REQUIRED

Use the information provided below to determine the optimum mix of products that should be produced. Also indicate the total contribution that would be earned by Ryobi Limited.

$(8$ marks$)$

INFORMATION

Ryobi Limited produces three products viz. Product A$,$ Product B and Product C$.$ The following information relates to the contribution, materials usage, expected demand and the materials availability for the month in respect of three products that it manufactures:

$\backslash$table$[[,$Product A$,$Product B$,$Product C$],[$Sales price per unit,R$40,$R$30,$R$20],[$Variable cost per unit,R$16,$R$10,$R$8],[$Materials required per unit of output,$12$ kilograms,$4$ kilograms,$2$ kilograms$],[$Estimated sales demand,$1000$ units,$1250$ units,$1100$ units$]]$

Availability of materials is limited to $16200$ kilograms for the month.