SECTION A: Answer BOTH questions from this section

Question $1$

Wheelcom Limited has been trading successfully for many years. It manufactures a part for vehicles and sells a single product. They are an established company based in a remote part of East Anglia and have a small number of loyal customers. They work hard to provide a good product and maintain excellent relationships with their customer base whose directors are well k wn to the company.

The company's financial accountant is due to retire in the next year and you have just started working for them as a business consultant. They provide you with the accounting information from the previous $6$ years and ask you to compute some management accounting figures and give some advice about the future direction of the company.

The selling price of their product is $18$ and has remained unchanged for the previous $6$ years. The following information relates to its production and cost data for the previous $6$ years.

Costs include variable, fixed or semi variable $($You can assume that there is no change to the company's stock levels.$)$

Unit

Total

Year

Volume

Costs $$