A computer hardware distributor, Modem, has three branches in Cardiff, Edinburgh and London. It has the following financial details. L01 Sales Direct Other Variable Labour Overheads

£ e £

Cardiff 200,000 60,000 105,000 Edinburgh 300,000 80,000 150,000 London 1,000,000 350,000 520,000 Head office fixed overheads are £150,000.

Required:

(i) Calculate the contribution/sales ratios.

(ii) Draw the contribution graph.