Question 1 A company manufactures three products, X, Y and Z. The sales demand and the standard unit selling prices and costs for the next accounting period, period 1, are estimated as follows: Maximum Demand (in units) х 4000 $28 per unit Y 5500 $22 per unit Z 7000 $30 per unit Selling price Variable costs: Raw material ($1 per kg) Direct labour ($12 per hour) $5 per unit $12 per unit $4 per unit $9 per unit $6 per unit $18 per unit (a) If supplies in period 1 are restricted to 90000 kg of raw material and 18000 hours of direct labour, the limiting factor would be: (1.5 marks) (b) In period 2 the company will have a shortage of raw materials, but no other resources will be restricted. The standard selling prices and costs and the level of demand will remain unchanged. In what order should the materials be allocated to the products if the company wants to maximize profit? (2 marks) 1" Z Y 2d х Z Y X 300 Y х х Z (tv) Y