QUESTION THREE

i$)$ A baker is trying to decide the number of batches of a particular type of bread that he should bake each day. Daily demand ranges from $10$ batches to $12$ batches. Each bateh of bread that is baked and sold yields a positive contribution of Shs$.50,$ but each batch of bread baked that is not sold yields a negative contribution of Shs$\mathrm{.}20.$ Assuming the baker adopts the minimax regret decision rule.

Required:

a$)$ Calculate the payoff table.

b$)$ The number of batches of bread that he should baked each day.

ii$)$ Describe THREE characteristics of learning curye theory.

iii$)$ Discuss FOUR different purposes of a transfer pricing system.

QHESTIONFOUR

A company is able to produce four products and is planning its production mix for the next period. Estimated cost, sales, and production data are as follows:

Based on the above data, which is the most appropriate mix under following assumptions:

i$)$ If labour hours are limited to $50,000$ in a period

$(10$ marks$)$

ii$)$ If material is limited to $\backslash (110,000\backslash$mathrm$\{$kgs$\}\backslash )$ in a period.

$(10$ marks$)$