$4\mathrm{.}1$ The Cawfe Mug manufactures and supplies grounded coffee to the hotel trade. In

$2016$ the firm produced and sold $20,000kg$ of coffee, with the following result :

The Cawfe Mug has received an offer from Caf$$ Bleu, a company in Canada. Cawfe Mug

could purchases the finished product from Caf$$ Bleu for $$125$ per $kg.$ This would result in

Cawfe Mug closing its production plant, thus eliminating all its variable costs and $\frac{2}{3}$ of

its fixed cost.

Required

a$)$ Prepare a comparative income statement to show whether it is

financially prudent to close the factory and buy the finished product

from Caf$$ Bleu

b$)$ State three $(3)$ non financial factors that Cawfe Mug should

consider before making a final decision