SECTION A Q.2 As Engineering Manager in Your Company Ltd. you are responsible for maximising the profit from four product lines W, X, Y and Z. You have been provided with the following information: Direct materials (kg) 75 90 85 70 Direct labour (h) Fabrication Assembly Packaging 4.5 8 3.5 4.5 9.5 4 3.5 6 Selling price per unit (S) 1400 2350 3000 1200 280 Max. sales for the period (in units) 400 300 450 Budgeted production 300 270 270 280 (in units ) Additional information is also provided 1 There are no closing stocks. 2. Material costs are estimated at 8.00/kg 3. The labour rate for the assembly and packaging operations is 16.00/h and 22/h for the fabrication process. The skilled labour required for the fabrication is in short supply although there is just enough to meet the current budgeted production 4. Required Prepare a statement showing the contribution from each product based on the budgeted production. (a) (8 marks) (b) Calculate the contribution per unit of limiting factor (2 marks) Prepare a statement showing the maximum total contribution that can be obtained. Explain your rationale (c) (10 marks)