A company produces two products
A: 1600 sold per week at ₤9 each, direct unit cost is ₤2.50.
B: 7000 sold per week at ₤5 each, direct unit cost is ₤4.20.
Company overheads = ₤9000 per week
Show the profitability of each product if the overheads are distributes
In proportion to the turnover
50% to A and 50% to B
Briefly discuss the implications.