Total

capacity
A B Total capacity of A of B
Sales unit 6000 16000 9000 24000
SP 40 64
Direct Material 12 22
Direct wages 8 12
Var. OH 4 6
Fixed OH 8 12
Total 32 52
Profit 8 12
Total Fixed cost 48000 192000 240000
Total revenue 240000 1024000
Total Profit 48000 192000 240000
Total Cost 192000 832000
72000 288000 360000

24 40
16 24
Total Var. cost 96000 384000 480000

1. A be discontinued product

Sales unit 4000

Existing sales unit 16000
Total contribution per unit 22
Total variable cost 440000

2. Discontinue product B & cappcity so released for the production of product C

C A
SP 52
Direct material 15
Direct wages 10
Variable OH 5
Contribution of per unit 22
Total Qty
I will never ever handle fixed cost on perunit basis
I will calculate in totality & forget it about.