1. Belcre Limited ("the Company") manufactures domestic cookers. It currently has two models, Polar White and Stainless Steel. You are provided with the following information for the year ended 30 April 2015 by the accounting department: Sales and Production (No. of units) Polar White 4500 Stainless Steel 4000 Additionally, the following figures for the year ended 30 April 2015 are also available: Selling price per unit () Variable costs per unit: Material () Inspection () 205 285 140 20 175 35 Direct Labour Hours (@ 10 per hour) 1 hour 2 hours You are provided with the following forecast information for the year to 30 April 2016: i. ii. Sales of both the Polar White and Stainless Steel models are expected to be at the 2015 levels (4500 units of Polar White and 4,000 units of Stainless Steel) and the selling price per unit is expected to remain constant. Fixed costs that are currently 300,000 per year are expected to increase by 10% in 2016. iii. The material cost is expected to increase by 5%. iv. v. The inspection and the direct labour costs are expected to remain at the same level as in 2015. The Company is planning to introduce a new model in the year to 30 April 2016, the "Morbid Black', which will be priced at 287. The Company expects to sell 2500 units of Morbid Black in the year to 30 April 2016. Cost estimates for material and inspection are 160 and 45 respectively. These cost estimates are for the amounts that are actually expected to be incurred in respect of the Morbid Black in the year to 30 April