19.7A Vernon Xylophones Limited makes xylophones (no surprises there). The direct materials cost of a xylophone is

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19.7A Vernon Xylophones Limited makes xylophones (no surprises there). The direct materials cost of a xylophone is £300; the direct labour process is intensive and costs £450 per xylophone. Both direct materials and direct labour are fully variable. Each xylophone sells for £1500. In August 20X2 the company expects to sell 120 xylophones, and it has budgeted for fixed overheads of £54000.

What is the company's budgeted contribution for August 20X2?

What is the company's budgeted net profit for August 20X2?

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