Required:a. Calculate the break even point of X, based on a demand of 100 units?b. Calculate the margin of safety of X?c. Rock plc has a limited supply of materials of 500kg. How much of each product should Rock plc produce in order to maximise the profit of the company. Calculate the profit for the company that the combination of products generates. d. A new customer has asked Rock plc as a one off order to produce 500 units of product Z. The customer will supply and pay for all of the materials for the order (scarce resources are not an issue). Rock plc has the machine capacity to complete this order, but will have to pay employees (both skilled and unskilled labour ) an overtime premium of 20% above their normal rates. In addition the skilled labour force will have to stop work on another order with an expected contribution of 10,000. What is the minimum price (the relevant cost) that Rock Plc should charge for producing the 500 units of Z. Include in your answer a justification of the costs that you have included and excluded within your calculation.

Rock pic has three products all of which require the same production facilities. Financial data on the three products are as follows: Product X Y Z per unit per unit E per unit Selling Price 150 120 110 Labour: skilled 20 30 40 unskilled 6 12 6 Materials 50 24 10 Variable overheads 16 24 32 Share of xed overheads 20 30 40 Demand (units) 100 150 100 All three of the products use just one raw material, which is the same material for all three products. This material costs 12 a kilo and is scarce. All labour is a variable cost