(a)[4]
State two advantages and two drawbacks of break-even analysis.
(b)[3]
Calculate the break-even output in units per month.
(c(i))[1]
Calculate the monthly margin of safety measured in units.
(c(ii))[1]
Calculate the monthly margin of safety in revenue.
(d)[3]
Calculate the maximum monthly profit at $100\%$ capacity.
(e)[8]
Prepare a statement in marginal cost format showing J Limited’s forecast maximum total profit per month if the directors accept the new contract.
(f)[7]
Advise the directors whether they should accept the new contract with Bart and raise the selling price, then justify your view by explaining two advantages and two drawbacks.
(g)[3]
State three financial benefits of a budgetary control system.