Jule Ltd makes and sells two products, Tam and Lam. The following information is

available:

$$ Tam $$Lam

Production $($units$)9,0007,000$

Sales $($units$)8,0005,500$

Opening stock $($units$)500400$

Budgeted capacity $($units$)10,0006,000$

Financial Data: $$

$$ $ $$$

Unit selling price $200160$

Unit cost: $$

Direct materials $455$

Direct labour $4015$

Variable production overheads $1015$

$9535$

Fixed production overheads $4030$

$$

Fixed administration overheads were $$500,000$ and Fixed selling overheads were

$$400,000.$

Management is planning on launching a marketing campaign to increase the sale of

Tam. They believe that the higher selling price of Tam means that it will generate more

revenue and profit than Lam. Advise management on the product they should focus on

increasing sales for. $($Use References$)$