ng Ltd produces and sells the A8 mobile phone with three models in the range, the A8' A820 and the A830. In the UK Apsung Ltd sells via its own stores located in all major cit as well as to the electronics superstore CPW World. To encourage CPW World to stockl phones a substantial trade discount has been agreed. In addition, Apsung Ltd sells the phones directly to customers online of which 70% of the sales relate to the UK with the remainder sold overseas. The latest income statements for Apsung Ltd are detailed below. A810 A820 A830 Total '000 '000 '000 '000 Sales Revenue 1 737 2 895 1 158 5 790 Variable Manufacturing Costs 530 905 1,222 2,657 Trade Discounts 25 25 25 75 Salesforce commission costs E g Q Q Total costs w 2 804 Contribution 1 167 1 940 121 2 986 Fixed manufacturing costs 185 302 382 869 Sales and marketing costs 232 Administration costs @ Net Income & 1,638 503 1,700 Apsung Ltd want to understand the profitability of their products when sold via the diffen routes to market, particularly as the A830 has a negative contribution and have provided I following information relating to sales: i) The company's own stores account for 50% of the total sales revenue and the are split between the A810, A820 and A830 in the proportions 3:522. ii) CPW World are a growing source of income and now account for 20% of the tc sales revenue. They sell 115,800 of the A830 and sales of the A810 are doul this amount. The balance of their sales relate to the A820. iii) The online UK sales have the same breakdown by product as seen in their 0' stores. iv) The balance of sales by product relates to the online overseas customers. In addition: v) The price of each type of product is the same for all customers. vi) Variable costs can be allocated to products in the same percentage per prodl as shown in the income statement. vii) Trade discounts are only given to CPW World. viii) Sales commission is 1.25% of selling price. ix) Fixed manufacturing costs should be allocated to customers based on sales vaI of each product. x) Sales and marketing costs as well as administration costs should be allocated Home Stores, CPW World, UK online and Overseas online in the proporti 3:2:2:1. Question continues on next page