Question Seven - Linear Programming Plutonium produces two products X and Z. The details per unit of product are as follows: Product X Product Z Selling Price 180 160 8 kg @ 6 6 hrs_@ 10 Materials Labour Variable overhead Contribution 48 60 12 60 4 kg_@ 6 8 hrs @ 10 24 80 6 50 During the next accounting period the availability of resources is expected to be subject to the following limitations Material Labour 34,400 kg. 45,200 hours It is anticipated that the company will be able to sell all it can produce at the above prices and that at any level of output the fixed costs will remain at 84,000 for the period. Required: (a) Use the simultaneous equation method to determine the optimum production plan to produce X and Z. (b) Critically appraise the underlying assumptions used in linear programming