Jungle Animals makes 10 model animals with the following cost structure.

Required:

(i) Calculate the contribution per toy.

(ii) Calculate the contribution/revenue (sales) ratio per toy.

(iii) Which two toys bring in the greatest contribution?

(iv) Which three toys have the highest contribution/revenue (sales) ratio?

(v) Which two toys would you not manufacture at all?

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Selling Price Direct Labour Direct Materials Variable Overheads Alligators 1.00 0.50 0.20 0.35 Bears 1.20 0.60 0.10 0.30 Cougars 1.10 0.66 0.15 0.33 Donkeys 1.15 0.60 0.18 0.30 Eagles 1.20 0.56 0.12 0.28 Foxes 0.90 0.50 0.10 0.25 Giraffes 1.05 0.40 0.25 0.20 Hyenas 1.25 0.56 0.10 0.28 Iguanas 0.95 0.40 0.12 0.20 Jackals 0.80 0.40 0.13 0.20