(a)[3]
State three ways in which break-even analysis can benefit a business.
(b(i))[2]
Calculate the monthly break-even point in units.
(b(ii))[1]
Calculate the monthly break-even sales revenue.
(c)[2]
Calculate the forecast profit per month based on 5800 units.
(d)[1]
Define the term margin of safety.
(e)[10]
Prepare a marginal cost statement to show the monthly profit after these changes.
(f)[6]
Prepare the optimum production plan for the factory.
(g)[5]
Advise the directors whether the company should adopt the optimum production plan or not. Support your answer with both financial and non-financial considerations.