Ali & Co produces 3 different types of wooden blinds which are Pine, teak and Oak. Forecast figures are as follows.

Pine Teak Oak

Selling price per unit 61 158 170

Cost per unit

Direct material 30 60 80

Direct labor 15 46 24

Variable over head 6 12 16

Annual production and sales 2000 1600 1000

Calculate :

1. Statement showing contribution per unit of each product
2. Calculate the total forecast fixed cost for the year if fixed cost is 50% of direct material cost.
3. Prepare statement and show break even point for each type of blinds in units and value
4. Prepare statement using contribution margin to show the total profit or loss made by each type
5. If the company wants to stop production of Pine wood and it would increase the fixed cost by 25%. But the company estimate that sales of other two will increase by 50%. Prepare marginal cost statement to show the effect on profit by stopping pine production.