(a)[4]
Explain two reasons for using absorption costing.
(b)[2]
Calculate the monthly break-even point measured in units.
(c)[2]
Calculate the expected profit or loss for January 2024.
(d)[2]
Calculate the number of units that must be sold to reach the monthly target profit of $150\,000$.
(e)[6]
Calculate the monthly profit from Option A.
(f)[7]
Draw up a monthly marginal costing statement for Option B.
(g)[7]
Advise the directors on whether they should proceed with either of these options. Support your recommendation by considering both financial and non-financial factors.