1.JJ Asian Cuisinebegan operating their business as a partnership. The business has been so successful that they cannot keep up with market demand. Jason has completed his studying in Melbourne and wants to return back home to China to set up his own business. Jason is happy to sell his share of the business to James at market value. Now, James owns the entire business.

James wants to expand the business and set up the entire factory in Geelong, Melbourne.

James' family accountant advises him to set up the business under a family trust structure. James has three older siblings who live in the countryside. His parents recently retired and his grandparents are still fit and well.

Required:

A.Explain in simple language, three (3) reasons, why the accountant recommended the family trust structure rather than company?

B.James is still not sure how the family trust structure can be tax effective for James, help him to understand this particular point with example

2.JJ Asian Cuisineuses Cost Volum Profit Analysis to determine how changes in costs and volume affect the company's operating income and net income. It also helps Jason and James to make decisions about their future business idea.During the trimester you completed a number of group activities involving JJ Asian Cuisine operations.

Required:

From your knowledge of JJ Asian Cuisine:

A.Identity two fixed costs and two variable costs that JJ Asian Cuisine has in the business

B.Explain why they are fixed costs and why they are variable costs

C.Highlight two (2) limitations of CVP analysis for Jason and James

3.JJ Asian Cuisinehas been using cost-based pricing for its products. Jason and James (the owners and founders of the business) have been discussing the differences between cost-based pricing and market-based pricing. Please assist Jason and James to:

A.Differentiate between cost-based pricing and market-based pricing using the example of hand-pulled noodle to demonstrate how each method can be applied

B.Suggest the most appropriate pricing method for JJ Asian Cuisine

Please use accounting knowledge to answer these quesions