The following table depicts the budgeted sales volume and per unit costs and profits for an English manufacturer (Toys Ltd.) of two different children’s toys, both of which are produced in the same...

The following table depicts the budgeted sales volume and per unit costs and profits for an English manufacturer (Toys Ltd.) of two different children’s toys, both of which are produced in the same factory:

Calculate the contribution per unit and total contribution for each of the two products. Since product B is unprofitable, calculate its break-even output i.e. sales quantity. Should management discontinue its production? Explain and justify your answer

Extracted text: Product Budgeted sales (units) 2500 3000 Sales price per unit 40 39 Material 12 6. Labour 12 20 Variable overheads 4 Fixed overhead per unit 10 Total cost per unit 35 40 Profit per unit -1 5. 5.