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3) An examination of the records of Caroni Limited revealed the following information relative to the production of one ton of sugar. Raw Material Costs

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3) An examination of the records of Caroni Limited revealed the following information relative to the production of one ton of sugar. Raw Material Costs $ 80 per ton Variable Processing Costs $ 70 per ton Fixed Costs $ 640,000 per year Selling Price $ 200 per ton You are required to compute: a) The Contribution Margin per ton b) The Contribution Margin Ratio per ton c) The Break Even Sales in Dollars d) The Break Even Sales in Tons 2 Marks 2 Marks 2 Marks 2 Marks 4) Green Lawn Limited manufactures Lawn Mowers, Weed Trimmers and Chain Saws. Its sales mix and contribution margins for each product areas follows: Sales Mix Contribution Margin Lawn Mowers Weed Trimmers Chain Saws 10% 50% 40% $ 40 $ 25 $ 50 The company's fixed costs are $ 5,840,000 Required: a) Compute the number of each product that the company must sell to break even. 10 Marks

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