1. XYZ Ltd. manufactures Product A and Product B. Information about the two products is as follows:

	Product A	Product B
Selling price per unit	100	90
Variable costs per unit	30	20

The company expects fixed costs to be 210,000. The products are sold as a package that contains 4 units of Product A and 1 unit of Product B.

Required:

1. Calculate the contribution margin per package.

2. Determine the break-even point in units for Product A and Product B.

3. Determine the level of sales (in POUNDS) necessary to generate a before-tax profit of 140,000.