Please answer all the questions. These are the command terms:

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3.3 BREAK-EVEN ANALYSIS: ACTIVIHr D Read The case STUdY information below Cll'ld answer The questions "101' follow. Bryony Miller runs a small pasta-making business, called Bryony's Pasta. She has borrowed funds to purchase a property. leased machines and employed Two staff. Her main competitor is caller;I Fasta Pasta but There are also a number of general food shops selling fresh pasta as a small part of Their product range. Bryony sells her pasta for a premium price of $7 per kilogram. Full capacity is 12 000 kilograms of pasta per year. She incurred The following expenses in 2007: I Lease costs $200 per week I Mortgage payment $500 per month I Bryony's salary $300 per week I Raw materials $1.25 per kilogram [kg] of pasta produced I Wages $1.60 per kilogram (kg) of pasta produced I Electricity/gas/water $0.15 per kilogram [kg] of pasta produced Bryony's Pasta is currently producing an output of 10 000 kilogram per year. A large hotel chain has approached Bryony and offered to purchase 4000 kilograms per year of pasta at a price of $4.50 per kilogram. Bryony is considering the offer and believes That it may be worthwhile as she is concerned about sales falling in the future. UNlT 3.2 AND 3.3 WS Name Date Score I40 1. With reference to Bryany's Pasta, distinguish between xed costs and variable costs. [3 marks] 2. Construct a break-even graph showing the break-even level of output, the margin of safety and The amount of profit at current output level. (Show any relevant workings] [5 marks] 3. Bryony is considering changing The price of her pasta. Describe Two possible pricing strategies and advise Bryony on the most appropriate to adopt. [6 marks] 4. Evaluate whether Bryony should accept the offer from the hotel chain. [6 marks] 30f3 UNIT 3.2 AND 3.3 W5 Name Date Score J40 3.2 COSTS AND REVENUES: ACTIVITY D Read the case study information below and answer the questions that follow. MODY I MItlAR GAIAGES The managing director of Mody 8. Millar Garages Ltd is concerned about the profitability of the business. She asked for cost details of the three divisions of the business - repairs, ' petrol sales and spare parts together with a breakdown of sales revenue. Unaware of the differences between costing approaches. she asked for overheads to be apportioned on full-cost principles according to the labour cost. The following data were provided: 2014 (50005) Sales revenue (A) Direcl labour costs DIrecl materials 35 other direct casts 5 Appotoned overheads I2 (total 560 000) Total cos! (B) I 42 245 62 Profit/(Loss) (A-B) (l 5i 55 6 When the managing director saw these details. she said, \"If we close down our repair division, the total annual profits will rise they would have been $15 000 higher last year if we had shut down in 2014." Overall profit made by the business in 20] 4 = [55 000 + 6000) 15 000 = $46 000 As a trainee accountant working with this company. you have been asked for your opinion on the gures above. UNIT 3.2 AND 3.3 W5 Name Date Soore I40 QUESTIONS: 2|) MARKS, 35 MINUTES I. Use the contribution costing method and gregare a new costing statement. [10 marks] 2. Discuss whether the repairs division should be closed in order to increase overall garage profits [ensure your justification is based on both quantitative and qualitative factors). [10 marks]