Contact WheelsLtd manufactures and sells car tyres. It has developed two new models, Z-Grip and Y-Slip, for use in long distance driving which will be launched in January 2021.These will be sold exclusively in the companys new car-mart. The annual fixed cost is $180,000. From a pre-launch market survey, it expects that sixty percent of the potential customers prefer Z-Grip while forty percent prefer Y-Slip. The following information has been extracted to facilitate a Cost-Volume-Profit analysis:

	Z-Grip	Y-Slip
Selling Price per tyre	$300	$400
Variable Cost per tyre	$80	$120
Sales commission per unit	$20	$30

Required:

1. Calculate the Unit contribution margin for each model of the tyres.
2. Calculate the weighted average contribution margin, assuming the sales mix as determined from the survey is expected to remain constant
3. Calculate the break-even point in units and in sales dollars (in total and per product) for Contact Wheels Ltds new car-mart. Assume a constant sales mix.
4. How many tyres of each modelneedto be sold to earn a target net profit of $66,000? Assume a constant sales mix.
5. Identify any two factors that may affect a cost-volume-profit analysis