Requirement: Short term decision makingSecurityAB Limited makes and sells three types of electronic security systems for which the followinginformation is available.Standard cost and selling prices per unitProduct ‘D’ ‘N’ ‘O’scan scan scanRM RM RMMaterials 70 110 155Manufacturing labour 40 55 70Installation labour 24 32 44Variable overheads 16 20 28Selling price 250 320 460Fixed costs for the period are RM450 000 and the installation labour, which is highly skilled, isavailable for 25,000 hours only in a period and is paid RM8 per hour. Both manufacturing andinstallation labour are variable costs. The maximum demand for the product is:‘D’ scan ‘N’ scan ‘O’ scan2,000 units 3,000 units 1,800 unitsRequired:a. Calculate the shortfall (if any) in hours of installation labour. (3)b. Determine the best production plan, assuming that SecurityAB Limited wishes to maximiseprofit. (8)c. Calculate the maximum profit that could be achieved from the plan in part (b) above.(2)d. Having carried out an investigation of the availability of installation labour, the firm thinks thatby offering RM12 per hour, additional labour would become available and thus overcome thelabour shortage. Based on the results obtained above and as the accountant, advise the firm’smanagement team whether or not to implement the proposal. (5)e. The management team has accused you, the accountant, of using too much jargon. Prepare astatement which explains the following terms in a way that a multidisciplinary team of managerswould understand. You will use this statement as a briefing paper at the next managementmeeting. The terms to be explained are:(i) relevant costs;(ii) avoidable costs; and(iii) incremental costs