(a)[5]
Prepare a statement showing the total budgeted monthly profit or loss for each product.
(b)[7]
Advise the directors on whether activity based costing (ABC) would be useful in helping them achieve their objectives. Justify your answer.
(c)[2]
State one benefit and one drawback for a business of dividing overheads on a per unit basis.
(d)[8]
Prepare a revised statement showing the total budgeted profit or loss for each product in a month, using the extra information on production overheads. The allocation of administrative and distribution costs is unchanged.
(e)[3]
Advise the directors on whether they should alter the products' selling prices. Justify your answer.