Intermediate. S plc produces and sells three products, X, Y and Z. It has contracts to supply products X and Y, which will utilize all of the specific materials that are available to make these two products during the next period. The revenue these contracts will generate and the contribution to sales (c/s) ratios of products X and Y are as follows:

Product Z has a c/s ratio of 25 per cent.
The total fixed costs of S ple are £5.5 million during the next period and management have budgeted to earn a profit of £1 million.

Calculate the revenue that needs to be generated by Product Z for S plc to achieve the budgéted profit. (3 marks)
CIMA P1 Management Accounting: Performance Evaluation

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Product X 10 million Product Y 20 million Revenue C/S ratio 15% 10%