The Barnes Company Manufactures Two Products The Company Expects Fixed Costs to Be £189,000

The Barnes Company manufactures two products. Information about the two product lines is as follows:
$\begin{array}{lcc}&\text { Product K } & \text { Product Y } \\\text { Selling price per unit } & £ 80 & £ 30 \\\text { Variable costs per unit } & \underline{45} & \underline{15} \\\text { Contribution margin per unit } & \underline{£ 35} & \underline{£ 15}\end{array}$ The company expects fixed costs to be £189,000. The firm expects 60 per cent of its sales (in units) to be Product K (a sales mix of 3:2).

Required:
a.Calculate the contribution margin per package.
b.Determine the break-even point in units for Product K and Product Y.
c.Determine the level of sales (in pounds) necessary to generate a before-tax profit of £135,000.