Fruit Ltd makes 3 types of products: Cherry, Blueberry and Strawberry. Extracts from the
budget for the next year are as follows:
Cherry Blueberry Strawberry
Demand and production (units) 2,000 3,000 4,000
The following information is per unit of each product
Per unit Cherry Blueberry Strawberry
AED AED AED
Selling price 174 340 308
Materials 30 80 60
Labour 40 100 80
Variable overhead 24 60 48
Each product uses a standard material component called a seed. Seeds are 10 AED per unit.
The company expects the total fixed cost budget to be AED 120,000
Required:
Part (a).
It has now been realised that there will only be 35,000 seeds available next year.
Calculate the production plan that will maximise profit for Fruit Ltd for the next year. State
what that plan will be (All workings must be shown