(a)[11]
Draw up a statement showing the highest budgeted profit the company can earn in December 2017, allowing for the materials shortage and the minimum production requirement.
(b)[6]
Prepare a statement showing the highest budgeted profit the company can earn in December 2017, taking account of the shortage of materials but not the minimum production requirement.
(c)[7]
Advise the directors of S Limited whether they ought to produce a minimum of $1000$ units of each product. Support your answer.
(d)[2]
State the meaning of ‘margin of safety’.
(e)[4]
Explain how useful margin of safety is to a company.