Zara Builders Inc. produces two products, A and B. The following information is presented for both products:

	A	B
Selling price per unit	$33	$23
Variable cost per unit	21	11

Total fixed costs are $240,000.

a. Calculate the contribution margin for each product(5 marks)

b. Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B(10 marks)

c. Determine the level of sales (in dollars) necessary to generate operating income (profit) of $260,000(10 marks)