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Zed Ltd manufactures four (4) cellphone models namely : Simple ; Moderate; Delux and Super. The following gives the cost and sales data per unit for each model:
SIMPLE MODERATE DELUX SUPER
Selling Price/ unit K 500 K 700 K 1,200 K 1,500
Inputs/ resources
Material/unit K 100 K 120 K200 K 250
Labour/unit (K50/Lh) 100 250 500 700
Variable prod. Service(a) 50 200 200 400
Fixed prod. 100 200 200 400
Note (a) K 100/machine hour
REQUIRED
Question 1. Which model is best to produce when there is a break down in machines?
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