Question 1 Based on the information given in Appendix Q1.1 below, answer the following questions. a. Using the information in Table 1, and your knowledge of relevant costs, calculate the increase/ decrease in operating profit for the company if the Fixed-Wing drones were discontinued. (4 marks) b. One of the directors says that Fixed Wing drones should be continued as they currently make a positive contribution of E38,000. Using your knowledge of marginal and relevant costing explain why they are mistaken. (5 marks) c. Based on your analysis of relevant and non-relevant costs: i. Amend the operating statement in Table 1 to provide the total profitability of the drones as well as the profitability of each drone. Assume that the Fixed Wing drone has been discontinued and that the depreciation will be allocated to each drone continuing in production in proportion to sales achieved. (3 marks) ii. Explain the value to the business in producing the new operating statement you propose in c (i) above. (3 marks) d. Using the information in Table 2, and your knowledge of relevant costs, calculate the difference in profit over the next five years between keeping and replacing the old machine. (5 marks) e. Evaluate the response of the Board of Directors to the proposed new machine. (3 marks) f. Outline two potential advantages of purchasing a new machine that can't be measured from the information given in Table 2 . (2 marks) Total Question 1: 25 marks