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Advise the company whether the component should be manufactured internally or purchased from the external supplier. Q12. Maame Fosua Company Ltd manufactures 3 products - Asem, Papa and Bone. The budgeted sales demand, unit selling price, and unit variable costs for the month of July are as follows: Asem 1,100 160 Papa 1,000 180 Bone 800 140 Budgeted Sales (units) Unit Selling Price (GH) Variable cost per unit (GHC): Materials Labour 80 40 60 60 20 90 . . Other relevant data are as follows: All the three products use the same direct materials and the same type of labour. A unit of raw materials costs GH 10 and the wage bill per hour of direct labour is GH 20. The company has existing stocks of 500 units of Asem and 400 units of Bone that it will use up to meet sales demand for July. The budgeted sales relate to July. The available supply of materials will be restricted to 9,600 units and the available supply of direct labour to 6,600 labour hours. The monthly fixed cost is GH 60,000. Required: i. Determine the production and sales mix that will maximize the company's profit. ii. Calculate the maximum net profit that can be achieved for the month. Q13. Asaawado Co. Ltd., a co-operative society produces four types of rice-Odo, Texas, Afife and Nasia for the local market. The farm manager, Kaful Aprim is planning its production mix for the next farming season and has come out with the following information: Odo Afife Nasia 210 180 150 Selling price per Bag of 50 kg (GHC 000) 120 Resources per Bag: 5 4 5 6 Materials (kg) 4 5 3 Labour hours 20,000 20,000 20,000 20,000 Maximum Demand Texas 6 135

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