Cicio Ltd has three products all of which require the same production facilities. Financial data on the three products are as follows:

Product	alfa	beta	gamma
	$	$	$
selling price per unit $	200	160	135
variable material cost per unit $	45	50	35
variable labour cost per unit $	47	44	40
the share of fixed overhead per unit $	6	6	6
machine time per unit hours	9	8	4
monthly market demand in units	2400	1200	800

The same machine is used to produce all three products and hence, fixed cost is not affected. The business has a machine time capacity of 32,400 hours per month. The total fixed cost per month is 175,000.

1. With supported workings, show which combination of products to be produced to achieve the highest profit for the company.

2. If the business were to produce only product gamma for the next month: - How many units of product gamma should be produced to break- even? (Note: Assume for this part of the question that there is no effective limit to market size and staffing level) (1 mark) - What is is the contribution margin ratio % for product gamma? (1 mark) - How many units of product gamma should be sold by Cicio Ltd in order to achieve a target profit of 120,000 per month.