It has three types of jeans all of which require the same production facilities. Estimates for the next month have been made as follows: Product A B C Selling price per unit () 120 150 80 Variable Material Cost per unit () 35 50 40 Variable Labour Cost per unit () 25 30 16 The share of Fixed overhead per unit () 18 18 18 Machine time per unit (hours) 5 hrs 7 hrs 4 hrs Monthly market demand in units (units) 1,000 3,000 2,000 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 31,000 hours per month. Total fixed cost per month is 108,000. REQUIRED: A) With supported workings, show which combination of products to be produced to achieve the highest profit for the company. Clearly show your workings which show the no of units to be produced, total contribution and total profit/(loss). (Total: 20 marks) B)If the business were to produce only product A for the next month: - How many units of product A 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) (3 marks) - What is is the contribution margin ratio % for product A? (3 marks) - How many units of product A should be sold in order to achieve a target profit of 90,000 per month. (4 marks).