Question 1 This question has two parts, A and B. Answer both parts. Part A: Task One PML plc makes a single product to which the following information applies: Selling price per unit 4.400 Variable costs per unit Direct materials 620 Direct labour 780 Variable overheads 500 6,000,000 Fixed costs Manufacturing overheads Selling overheads Administration overheads 2,000,000 3,500,000 Sales are forecast to be 74.000 units for the coming year. Required: (Present your answer to whole numbers) Calculate the forecast profit for the coming year. Calculate the breakeven point and the margin of safety at the expected level of sales, in both whole units and value. (iii) What level of sales volume and value would be required to give a profit of 6,300,000? Part B: Task Two Assume the periodic profitability analysis of sales territories reports the following: Sales Variable costs Fixed costs Profit/(Loss) Eastern 000 2.400 (686) (520) 1.194 Western 000 2,700 (761) (410) 1,529 Central 000 3,000 (1,985) (1,040) (25) Total 000 8,100 (3,432) (1,970) 2,698 Assume that a special study indicates that 830,000 of Central fixed costs and all variable costs are avoidable and 210,000 fixed costs are unavoidable if the territory is discontinued. Required (i) Prepare a calculation to determine whether the central territory should be discontinued. (iii) Comment on the result of (i). Apart from the calculation in (i), outline the factors that could be relevant to the decision to close or continue one factory that is making losses