QUESTION ONE Hill crest hotel makes and sells a single meal called 'Delicious'. rts currently operating at 80% capacity due to the effects of Corona virus producing 112.000 plates of the meal per month. The total monthlyr costs at the current level of operation is Sh. 611,000. At 100% capacity. total montth costs would be Sh. 685.000. Additional information: 1.At the normal selling price of the meal the contribution to sales ratio is 60%. 2. A new customer (a company intending to hold a meeting at the hotel) has offered to buy 25,000 plates of the meal each month at 20% below the normal selling price. 3. Hill Crest Hotel estimates that for ever).r five plates that it will sell to this customer, it will lose one plate of the meal of its current monthly sales to its competitors. Required: (i) Determine the variable cost per plate of the meal and the total fixed costs per month (3 marks} (ii) The current sales price and contribution per unit at this price (Smarks) (iii} The breakeven point in units (Plates of the meal) and in dollars (Sh) (2 Marks) (iv) Advice the management of the hotel on whether the offer tor the new customer should be accepted (2 Marks)