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A. Calculate the break-even point in total units and units per product for 2020, using the following table: [5 marks] Life Jackets Life Vests Buoyancy Aids Total Unit sales Contribution margin Sales mix % Weighted Average Contribution Margin ____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ B. Calculate the total profit for 2020. Show all your workings. [2 marks] ____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ C. Safety First is rearranging its store and wants to ensure that they make the best use of the limited space available to maximise sales possibilities. They have 150 metres of space available, and the 3 products use up space as follows: Life Jackets Life Vests Buoyancy Aids Contribution margin per product $75 $80 $60 Minimum shelf space required per product 2.5 1.2 1.5 How should the shelf space (150 metres) be allocated to the 3 products to maximise the profits? Justify your reasons for the space allocation using the relevant figures calculated above.

2. Safety First is a manufacturer of life jackets, life vests and buoyancy aids. They have provided the following information relating to the sales of their products in 2020:4 Life Vests Sales mix (8,500 units) Selling price Variable cost/unit Life Jackets 2,000 $120 $454 Buoyancy aids 2,600 3,9004 $1104 $8546 $304 $254 Total Fixed costs = $515,000

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