$($a$)$ What is the total fixed cost for the first year? $(0\mathrm{.}5$ mark$)$

$($b$)$ Substantiate with itemized elements. $(2$ marks$)$

$2.($a$)$ What is the total variable cost for the first year? $(0\mathrm{.}5$ mark$)$

$($b$)$ Substantiate with itemized elements. $(3$ marks$)$

$3.($a$)$ Is Golden Mouse Trap making a profit or is it incurring a deficit in the first year? $(0\mathrm{.}5$ mark$)$

$($b$)$ in either case, what is the exact amount in $2$ decimal places? $(1\mathrm{.}5$ marks$)$

$4.$ What is the estimated quantity to be sold at the new price in the second year?

$($a$)$ List formula to be used $(0\mathrm{.}5$ mark$)$

$($b$)$ Working steps $(2\mathrm{.}5$ marks$)$

$($c$)$ Answer $(1$ mark$)$

$5.($a$)$ What is the total fixed cost for the second year? $(0\mathrm{.}5$ mark$)$

$($b$)$ Substantiate with itemized elements. $(2$ marks$)$

$6.($a$)$ What is the total variable cost for the second year? $(0\mathrm{.}5$ mark$)$

$($b$)$ Substantiate with itemized elements. $(3$ marks$)$

$7.($a$)$ Is Golden Mouse Trap making a profit or is it incurring a deficit in the second year? $(0\mathrm{.}5$ mark$)$

$($b$)$ In either case, what is the exact amount in $2$ decimal places? $(1\mathrm{.}5$ marks$)$

$8.$ What difference would a category benchmark on elasticity of $-1\mathrm{.}45$ make to the profit$/$deficit situation in the second year? Substantiate your answer in the same manner as you had for the earlier questions $(4$ marks$)$

$9.$ What lessons can you draw from the above. $(2$ marks$)$