(a)[4]
Prepare a marginal cost income statement for the quarter ended 30 September 2016.
(b)[2]
Calculate the break-even point, in units, for this quarter.
(c(i))[4]
Calculate how many units must be sold per quarter to make a profit of $20\,000$ under Proposal A.
(c(ii))[6]
Calculate how many units must be sold per quarter to make a profit of $20\,000$ under Proposal B.
(d)[8]
Recommend to the directors which proposal they ought to choose. Support your answer by weighing up the advantages and disadvantages of each proposal.
(e)[6]
State three advantages and three disadvantages of a budget-preparation system.