Intermediate H Limited manufactures and sells two products, J and K. Annual sales are expected to be in the ratio of J: 1, K: 3. Total annual sales are planned to be £420 000. Product J has a contribution to sales ratio of 40%, whereas that of product K is 50%. Annual fixed costs are estimated to be £120000.

The budgeted break-even sales value (to the nearest £1000):

A £196000 B £200000 C £253 000 D £255 000 E cannot be determined from the above data.

LO1