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Apsung Ltd produces and sells the AS mobile phone with three models in the range, the A810, A820 and the A830. In the UK Apsung

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Apsung Ltd produces and sells the AS mobile phone with three models in the range, the A810, A820 and the A830. In the UK Apsung Ltd sells via its own stores located in all major cities as well as to the electronics superstore CPW World. To encourage CPW World to stock the phones a substantial trade discount has been agreed. In addition, Apsung Ltd sells the phones directly to customers online of which "(0% of these sales relate to the UK with the remainder sold overseas. The latest income statements for Apsung Ltd are detailed below. A510 A520 A530 Total 000 '000 '000 '000 8a|es Revenue 1 T3? 2 895 1 158 5 T90 Variable Manufacturing Costs 530 905 1,222 2,85? Trade Discounts 25 25 25 75 8alesforce commission costs E g Q E Total costs E E w 2,804 Contribution 1,16? 1,940 121 2,888 Fixed manufacturing costs 185 302 382 869 Sales and marketing costs 232 Administration costs @ Net Income U 1 ,638 503 1,?00 Apsung Ltd want to understand the protability of their products when sold via the different routes to market, particularly as the A830 has a negative contribution and have provided the following information relating to sales: i} The company's own stores account for 50% of the total sales revenue and these are split between the A810, A820 and A830 in the proportions 3:5:2. ii} CPW World are a growing source of income and now account for 20% of the total sales revenue. They sell 115,800 of the A830 and sales of the A810 are double this amount. The balance of their sales relate to the A820. iii} The online UK sales have the same breakdown by product as seen in their own stores. iv} The balance of sales by product relates to the online overseas customers. In addition: v} The price of each type of product is the same for all customers. vi} Variable costs can be allocated to products in the same percentage per product as shown in the income statement. vii} Trade discounts are only given to CPW World. viii} 8ales commission is 1.25% of selling price. ix} Fixed manufacturing costs should be allocated to customers based on sales value of each product. 3:} Sales and marketing costs as well as administration costs should be allocated to Home Stores, CPW World, UK online and Overseas online in the proportion 312:2:1

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