One of the products that Jackson Ltd manufactures is known as Product (B)

Subject:AccountingPrice:3.86 Bought9

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One of the products that Jackson Ltd manufactures is known as Product (B). Unit cost and revenue data for the product is provided below. 

                                 £

Selling price         30.00

Variable costs      12.00

Contribution         18.00

Fixed costs are £66,000 per month.

Last month the business produced and sold 6,400 units. This activity level represents 80% of current production capacity.

Calculate the:

1.  The contribution / sales ratio (C/S %)
2. The product break-even point (in units and £s sales)
3.   The level of sales (in units and £s) required to produced profits of £42,000
4.   The current production capacity (in units)
5.   The margin of safety (in units and £s)
6.   The total business profits if all spare capacity were to be sold for £20.00 per unit