(a(i))[1]
Define contribution.
(a(ii))[1]
Define fixed costs.
(a(iii))[1]
Define margin of safety.
(b(i))[3]
Calculate the break-even point, measured in units.
(b(ii))[1]
Calculate the margin of safety, in units.
(c)[2]
Calculate how much the monthly target profit is exceeded by.
(d)[6]
Prepare a marginal-costing statement for Option A so that the total monthly profit is shown.
(e)[8]
Calculate the total profit expected in the first month of operation if Option B is chosen.
(f)[7]
Advise the directors on which option to select. Support your decision by discussing financial and non-financial factors for both options.