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Section A Answer one question from this section. Pelican Pies (PP) Pelican Pies (PP) produces high-quality pies that have limited brand loyalty outside of their local market. The prices of the pies are higher than those of PPs competitors. Table 1: Selected nancial information for PP tor the year ending 30 April 2011. Number of pies sold Price of each pie sold Cost of goods sold per pie Expenses 0 Electricity per month - Rent of premises per quarter - Promotional expenses per year 6% interest per year paid on a loan of Tax 25% of profits For 2018. PP's owner, Austin, is looking to increase sales beyond the local market by lowering prices and spending a greater proportion of PPS promotional budget on above-the-Iine methods such as regional newspaper advertisements. To finance this type of promotion, Austin will have to increase his loan amount by $10000. Table 2: Selected nancial Information for the year ending 30 April 2018. Number of pies sold 20% increase on 2017 figure Price of each pie sold 30% decrease on 2017 gure Cost of goods sold per pie $1.75 Expenses 0 Electricity per month $200 0 Rent of premises per quarter $1000 . Promotional expenses per year 200% increase on 2017 figure 8% interest per year paid on a loan of $50 000 ax 25 % of profits (a) Describe one reason why brand loyalty would be important to PF. [2] (b) Construct a prot and loss account for PP for the year ending 30 April 2017 based on the gures in Table 1 (show all your working). [4] (c) Construct a forecasted profit and loss account for PP for the year ending 30 April 2018 based on the gures in Table 2 (show all your working). [4]