Angelicus and Co. manufactures three different qualities of lock, Domestic, Commercial and Industrial. The company's results for

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Angelicus and Co. manufactures three different qualities of lock, Domestic, Commercial and Industrial. The company's results for the year ended 31 March 2003 were as follows.

Fixed overheads are absorbed on the basis of 50% of direct materials. 


Required 

(a) For the year ended 31 March 2003 calculate, for each type of lock, 

(i) The contribution per unit; 

(ii) The contribution as a percentage of sales. 

Give answers to a maximum of three decimal places. Show all workings 

(b) Calculate the break-even point for each type of lock in both units and dollars. 

(c) Advise whether Angelicus should cease production of Domestic and Commercial locks. Give your reasons.

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