Critically discuss and explain the results as below.

1. Contribution margin for 1000 units

Contribution Margin for ACTS ( for 1000 units) Amount ( $ ) Percentage Revenues - All variable costs Revenues 6.00 Less all variable cost per unit Raw material per unit Ground nut 1.25 common salt 0.04 Sugar 0.17 Emulsifier 0.01 Preservatives 0.05 Jar 0.15 Label 0.15 Seal 0.03 Packaging cost per unit 0.2 Total raw material per unit 1.87 Direct labor cost per unit 0.7 Total direct labor cost per unit 0.7 Variable maunfacturing overhead per unit Utlities 0.3 Equipment maintenance 0.2 Total variable maunfacturing overhead per unit 0.5 Total variable cost per unit 3.07 Contribution margin per unit 2.93 48.83% Contribution for 1000 units 2930 49.00%Gross margin for ACTS ( first year ) Amount ( $ ) Percentage Revenues 1,521,600 Less cost of goods sold -878.400 Gross margin ( first year 643.200 42.27% units sold ( first year in units 120000 Gross margin ( for per unit ) 5.36 42.27% Gross margin ( for 1000 units 5360 42.27%