The manager of a shop is deciding how much shelf space to devote to three different products. Sales and costs for the last month are shown below:

	Pencil case	Photo frame	Notebook
Selling price per unit	6.00	4.90	8.00
Variable costs per unit	2.40	3.34	5.20
Average units sold per day	25	20	15
Average units sold per metre of shelf space per day	6	10	9
Number of days in month				30
Total fixed costs				1,000

From the next month, after a re-allocation of shelf space, the shop will have a maximum front shelf space of 10 metres available for the three products. The manager wants a minimum of one metre and a maximum of six metres shelf space for each product.

1. Show the contribution margin per unit for each product and the total revenue, total contribution and total profit for the last month.

2. It is assumed that all the unit sales and cost information above, and the mix of products and sales, will remain the same for the current month.

a- Based on the proportion of products sold, what is the average contribution per unit for all three products?

b- How many of each products needs to be sold in this month to reach break-even?