Lever Brothers Limited produces following products and is studying the profitability of its product line. Following data is given to you about the firm for the coming year:

Product	X	Y	Z
Sales in units	100,000	120,000	80,000
	Rs.	Rs.	Rs.
Revenue	1,500,00	1,440,000	880,000
Costs:
Material	500,000	480,000	240,000
Labour	400,000	320,000	160,000
Overheads	650,000	600,000	360,000
Total cost	1,550,000	1,400,000	760,000
Profit / (Loss)	(50,000)	40,000	120,000

Chief Executive Officer of the company is concerned about the loss on product X he is considering ceasing production of it and switching the spare capacity of 100,000 units to product Z. Following additional information is also available:

1. Units produced are sold.
2. 25 percent of the labour cost for each product is fixed in nature.
3. Fixed administration overheads of Rs.900,000 in total have been apportioned to each product based on units sold and are included to the overhead costs above. All other overhead costs are variable in nature.
4. Ceasing production of product, X would eliminate the fixed labour charge associated with it and one sixth of the fixed administration overhead apportioned to product X.
5. Increasing the production of product Z by 100,000 units would mean that the fixed labour cost associated with product Z would double, the variable labour cost would raise by 20 percent and its selling price would have to be decreased by Rs.1.50 to achieve the increase sales.

Required:

1. What is marginal cost per unit of each product based on:

1. Original budget
2. If product A is deleted.

2. Prepare a statement showing the total contribution and profit for each product based on:

1. Original budget
2. If product A is deleted.

Advice whether product A should be deleted from the product range, giving reasons for your decision using your results from (a) and (b).