Question 5 [25 marks} Part A The KYC Hotel always operates at 100% capacity and offers three types of bed rooms. The information on the room is as follows: Number of rooms available per night Price per room per day Cleaning time per room Daily cost of laundry and consumables Family 100 Double 100 Rs2,000 Single 100 FEE 1hr Rs300 Rs1,500 45minutes Rs180 Rs1,050 30minutes Rs120 Due to a shortage of cleaning staff, the number of available cleaning hours is only 200 per day. The fixed costs of the hotel, including all staff wages and salaries, are Rs212,500 per day. Given the shortage of cleaning staff, not all rooms can be made available for new guests. Required: (ii) Show that there is a shortage of daily cleaning hours. [3 marks] Given the shortage of daily cleaning hours, how many family, double and single rooms must be made available daily in order to maximize daily profit. [7 marks] Part B At 31 December 2020, Blue Label Ltd had manufactured whisky at a cost of $1,000,000. On 1 January 2021 Blue Label Ltd sells the whisky to Northern Bank Ltd for $1,400,000 on the binding agreement that Blue Label Ltd has to buy back the whisky from Northern Bank Ltd year end. During on 31 December 2023 at a price of $2,000,000. Blue Label Ltd has a calendar this time, the whisky is still kept in the barrels located on the premises of Blue Label Ltd. Required: Explain how the above transaction should be recorded in the Books of Blue Label Ltd and show the extracts of the statement of financial position as at 31 December 2021 and the income statement for the year ended 31 December 2021. [15 marks]