(a(i))[1]
Define the following term: Direct costs.
(a(ii))[2]
Define the following term: Stepped costs.
(b)[1]
State the formula for finding the margin of safety in units.
(c)[2]
Explain the term 'limiting factor' when using marginal costing.
(d)[3]
Calculate the number of units to be sold for the company to achieve its target profit for December 2021.
(e)[5]
Prepare a budgeted marginal cost statement for December 2021.
(f)[9]
Calculate the monthly profit to be made from proposal A.
(g)[7]
Advise the directors which proposal they should choose. Justify your choice by considering both financial and non-financial factors.