(a) Majid Building Materials Company sells products A, B. & C In 2020 the unit sales price, variable costs, and sales mix of these products were:

	Products
	A	B	C
Selling Price per unit	45	63	108
Variable cost per unit	27	42	57
Sales Mix	2	1	3

Fixed costs are $ 210,000

Required

(1) Compute Majids Breakeven sales (units). Prove your answer (10 marks).

(2) Calculate the sales required to earn a target profit $ 840,000 & Show the proof (10 marks)

(b) A company produces two products A and B. The cost information is as follows:

	A	B
Selling Price per unit ($)	160	120
Variable cost per unit ($)	80	64
Required Production (Machine) hours required to manufacture one unit of completed Product	2	1
Sales Potential (Demand) (units)	4,000	,8000
Available production hours	4,000 hours

Production hours are in short supply and it is a limiting factor for this company.

Required

Show which product (A or B) is the most profitable for the company as per contribution per limiting factor? (per production hour). Comment on the results. (5 marks)