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Question A4 BSE Veterinary Services is a specialist laboratory carrying out tests on cattle to ascertain whether the cattle have any infection. BSE has prepared

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Question A4 BSE Veterinary Services is a specialist laboratory carrying out tests on cattle to ascertain whether the cattle have any infection. BSE has prepared a budget for the next 12 months when it intends to make and sell four tests to farms, details of which are shown below: Product / Test Sales units (thousands) Selling price per unit 20 40 Variable cost per unit E 10 10 K 14.00 8.00 4.20 7.00 L 4 50 20 M 10 Budgeted fixed costs are E240,000 per annum and total assets employed are E570,000. (a) [5] Calculate the total contribution earned by each test, and the combined total contribution (b) Calculate the C/S ratio for each test. [4] (c) For BSE, calculate the forecast return on investment [2]

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