Boadle Limited makes five different products: Alphas, Betas, Gammas, Deltas and Epsilons. Costs per unit are: direct costs £22, £18, £35, £30 and £43 respectively, Variable overheads: £11, £9, £16, £15 and £19 respectively. Fixed expenses for a month are estimated at £8,200, which have been allocated to each unit produced as: Alphas £17, Betas £13, Gammas £19, Deltas £15 and Epsilons £18. The company adds 20% on to the total cost of each product by way of profit.

(a) Calculate the price per unit of each product, based upon absorption (total cost)
pricing.

(b) Advise the company as to which products it should produce, if selling prices are restricted to: Alphas £59, Betas £25, Gammas £80, Deltas £44 and Epsilons £92.

(c) If maximum output per product is 100 units, calculate the profit or loss for the company as a whole if it:
(i) Produced the entire range of products (ii) Produced only the products you recommended in

(b) above. (Assume that unused capacity cannot be used for other products.)