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(B) (20 marks) Primer Bhd produces three products which have the following information in period 2: Product A (RM/unit) Selling price 30.00 Variable cost 13.00 Fixed production cost 10.00 Product B (RM unit) 17.00 6.00 8.00 Product C (RM unit) 21.00 9.00 6.00 Maximum demand 150 140 130 Fixed production costs are absorbed using a machine hour rate of RM2 per machine hour. The company has only 1,400 machine hours are available in period 2. You are required to: (a) List the products in the order of their production priority (ie the most profitable product first). (9 marks) (6) Based on the ranking in (a) and given that machine hour is the limiting factor, calculate the followings in tabular form: Number of units to be produced by each of the products; and (ii) Profits eamed by the company if the fixed costs for period 2 are RM3,000 (7 marks) The company is evaluating whether to enter into a new contract which require 100 hours of skilled labour and 200 hours of semi-skilled labour. Currently, all the skilled labour hours have been used for production of product M except for a spare capacity of 20 hours. To take up this new contract, some of the skilled workers will be taken from the existing production and the company will suffer some loss of sales. Each unit of product M generates a contribution of RM10 and needs two skilled labour hours to produce it. The skilled labour hour rate is RM12 per hour. Semi-skilled workers are hired as and when they are required and they are paid RM8 per hour. You are required to: (c) Calculate the total relevant labour cost of the new contract. (4 marks)