7.—(1) The amount of packaging waste to be recycled by a small producer who has elected to follow the allocation method is calculated as follows—
where—
“A” = a/1,000,000;
“a” is the annual turnover of the producer in the last financial year in respect of which audited accounts are available before the relevant date, rounded up to the nearest ten thousand pounds;
“B” is the recycling allocation for the relevant year prescribed in paragraph 8 below; and
“Zs” is the amount of packaging waste (in tonnes) which is to be recycled in the relevant year.
(2) For the purposes of this paragraph, a small producer shall carry out his recycling obligations by recycling the recyclable material he handled which is predominant by weight.