Self-test Kayla Ltd has prepared a budget for the year to 31 December 2008. The company manufactures three products and separate budgets are prepared for each product.

Product 1 2 3 Sales in units 10,000 30,000 50,000 Selling price per unit £25 £20 £15 Variable material costs £9 £7 £6 Other variable costs £3 £2 £1 Variable labour costs £40,000 £120,000 £200,000 Other budgeted fixed costs are £400,000.

Total assets employed are £1,000,000.

You are required to:

(a) Calculate the unit contribution for each product.

(b) Calculate the total contribution.

(c) Calculate the total profit for the year.

(d) Calculate the return on assets for the year.