(a)[5]
Calculate the weekly break-even output in units.
(b)[2]
Calculate the weekly margin of safety both in units and in revenue.
(c)[4]
Prepare an annual profit statement by using marginal costing.
(d)[4]
Calculate the selling price the directors should quote to the retailer so that a $20\%$ contribution to sales ratio is achieved.
(e)[5]
Prepare a profit statement for Costello Limited that shows the total annual contribution and total annual profit if the retailer accepts the quotation.
(f)[4]
Advise the directors whether they should go ahead with the extra order for the retailer. Give reasons to support your answer.
(g)[6]
Explain two advantages and one disadvantage linked to using the AVCO method of inventory valuation.