NorthShore Pharmacy has some options for prepackaged pills in their pharmacy. One is a round

container with days of the week curving around the edge and pills pre$-$sorted by the pharmacist for each

patient. The other is a rectangle that just goes Sun Mon Tues Wed Thurs Fri Sat across the top. The

revenues and expenses are as follows:

Calculate the contribution margin ratio for each kind of pill sorter individually. $(2$ marks$)$

What would the effect on incremental profit be of an additional $$8,900$ in sales of round pill

sorters, compared with the same $($independent$)$ increase of sales of rectangular pill sorters?

Which item would you therefore recommend expanding? $(3$ marks$)$

Calculate the break even point in units of this set of two sorters following the sales mix reported

above, and what that means for the sales of each type in units. $(3$ marks$)$

If you were told that the round pill sorters take $2$ hours to make, and the rectangular ones take $3$

hours, and you only have $12,000$ hours of manufacturing time, which product would be the better

sale, financially speaking? $(3$ marks$)$