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Hashira Sdn. Bhd. produces two products that uses the same ingredients but at different levels....

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Accounting

Hashira Sdn. Bhd. produces two products that uses the same ingredients but at different levels. The two products, X and Y earns a contribution of RM20 and RM30 per liter respectively. Due to the recent flood that affected the supplier's factory, Hashira is only promised 800 liters per month for both the ingredients, Chemical A and Chemical B for the quarter to June 2022 and the usual supplies will be back to normal after that. On the other hand, the supply of Chemical C by another supplier will remain the same at 1,000 liters per month. Each liter of X requires 1 liters of Chemical A, 2 liters of Chemical B and 1.5 liters of Chemical C. Each liter of Y requires 2.5 liters of Chemical A, 1 liter of Chemical B and 2 liters of Chemical C. One of Hashira's customers had a long-term contract for the supply of 250 liters of Y per month for the whole year of 2022.

 

Determine the optimum quantity of each of the above products that Hashira Sdn. Bhd. should produce for the forthcoming month in order to maximize its profit.

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