(a)[4]
State four assumptions made in break-even analysis.
(b(i))[1]
State the formula for working out the margin of safety in units.
(b(ii))[1]
State the formula for working out the margin of safety in sales value.
(c)[4]
Calculate the monthly margin of safety measured in units.
(d)[8]
Calculate how many units the monthly break-even point falls by if these changes are introduced.
(e(i))[3]
Calculate the profit for August 2022 for Option A.
(e(ii))[4]
Calculate the profit for August 2022 for Option B.
(f)[5]
Advise the directors which option they ought to choose. Support your answer by discussing both financial and non-financial factors.