QUESTION ONE

$[50]$

Brass Ltd produces two products, the Masso and the Rasso. Budgeted data relating to these products on a unit basis for September are as follows:

$\backslash$table$[[,$Masso,Russo$],[$Selling price,R$150,$R$100],[$Materials$,$R$80,$R$30],[$Commission$,$R$30,$R$20]]$

Each unit of product incurs costs of machining and assembly. The total capacity available for September is budgeted to be $700$ machining and $1000$ hours of assembly, the cost of this capacity being fixed at R$7000$ and R$10000$ respectively for the month, whatever the level of usage made of it$.$

The number of hours required in each of these departments to complete one unit of output is as follows:

$\backslash$table$[[$Department$,$Masso,Russo$],[$Machining$,1,2],[$Assembly$,2\mathrm{.}5,2]]$

Under the terms of the South African government special controls have been introduced whereby the selling prices are fixed and the maximum permitted output of either product is $400$ units. At the present controlled selling prices the demand for the product exceeds this considerably.