Answer Happy

You have been engaged
with PQR Ltd, a manufacturing company to provide advice on the most
profitable production plan for the company.
The company makes
three products Alpha, Beta and Gamma and the appropriate data are
as follows for the year 2022:
Cost per unit and selling
price
Additionnal
Information
Products
Units
Alpha
1,200 units
Beta
1,800 units
Gamma
1,500 units
There is a constraint
on the direct labour hours, which is limited to 6,500 direct labour
hours.
The sales director has
already accepted an order for 100 ALPHA, 200 BETA and 400
GAMMA which must be supplied. These quantities are
included in the market demand estimates above.
a.
Identify any shortfall for the year
2022 based on the above information.
(2 marks)
b.
Determine the production units of each
product in order to maximise profit.
(15 marks)
c.
Calculate the maximum profit based on
your answer obtained in (b) above.
(3 marks)
d.
Critically evaluate
whether limiting factor and throughput accounting are the same
thing.
(20 marks)