One of the products that Jacksons Ltd manufactures is known as Product (B). Unit cost and revenue data for the product is provided below.

Selling price Variable costs Contribution

Fixed costs are 66,000 per month.

30.00 12.00 18.00

Required:

7. Calculate:

a. The contribution / sales ratio (C/S %)

b. The product break-even point (in units and s sales)

c. The level of sales (in units and s) required to produced profits of 42,000

d. The current production capacity (in units)

e. The margin of safety (in units and s)

f. The total business profits if all spare capacity were to be sold for 20.00 per unit

One of the products that Jacksons Ltd manufactures is known as Product (B). Unit cost and revenue data for the product is provided below. Selling price 30.00 Variable costs 12.00 Contribution 18.00 Fixed costs are 66,000 per month. Last month the business produced and sold 6,400 units. This activity level represents 80% of current production capacity. Required: 7. Calculate: a. The contribution / sales ratio (C/S %) 2 marks b. The product break-even point in units and s sales) 2 marks C. The level of sales (in units and s) required to produced profits of 42,000 2 marks d. The current production capacity (in units) 2 marks e. The margin of safety (in units and s) 2 marks f. The total business profits if all spare capacity were to be sold for 20.00 per unit 3 marks Show all workings. Requirement C.7 = 13 marks