Tyre Makers Ltd makes and sells tyres in the Mandeville area. They manufacture three (3) types of tyres: Regular, Wide, and Low-Profile. The following information is available for the three types of tyre:

	Regular	Wide	Low-Profile
Selling price	$10,000	$20,000	$35,000
Variable cost	$8,000	$13,000	$25,000
Contribution margin	$2,000	$7,000	$10,000
Expected sales	180	120	60

Fixed costs are $2,400,000.

Required:

A. Calculate the weighted average contribution margin per unit. [3 marks]

B. Assuming the sales mix does not change; calculate the number of types of tyre to be sold to achieve break-even point? [5 marks]

C. Assuming the sales mix does not change and if the target net income before tax for the coming year is $480,000, how many units of each tyre must be sold? [6 marks]

D. Assuming the sales mix does not change and the company desires a profit after tax of $600,000, how many units of each tyre must be sold? The prevailing tax rate is 40%.