ACCA Level 2 Management Accounting IM8.5 Intermediate: Multi-product profit-volume graph. JK Limited has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Sales in units (thousands) Selling price per unit () Variable cost per unit () Product 10 20 o 40 14.00 8.00 4.20 7.00 e o 10 Budgeted fixed costs are 240 000 per annum and total assets employed are 570 000. You are required: (a) to calculate the total contribution earned by each product and their combined total contributions; (2 marks) You not be conied scanned, or duplicated, in whole or (b) to plot the data of your answer to (a) above in the form of a contribution to sales graph (sometimes referred to as a profit-volume graph) on the graph paper provided; (6 marks) Y (c) to explain your graph to management, to comment on the results shown and to state the break-even point; (4 marks) (d) to describe briefly three ways in which the overall contribution to sales ratio could be improved. (3 marks) CIMA Stage 2 Cost Accounting