4. 4a) The marketing and sales team for Dapple Corporation feel there is room in the market to introduce alternative designer branded merchandise into its range of laptops. This would mean outsourcing the manufacturing of accessories such as laptop covers. Due to the quick response times required to meet the demands of Dapple's customer orders, the designer brand manufacturer is proposing to set up a new manufacturing business unit close to Dapple Corporation to produce six new designs for designer laptop covers. Operations and purchasing are not convinced this arrangement will be cost effective and so wish to conduct a breakeven analysis of the situation to ensure the designer brand manufacturer's operation is profitable. The fixed costs for rent and labour are 5,000 per month. The Forecasted Sales Price, Variable Cost and Forecasted Monthly Sales Quantity for the six new products are given in Table 3 below. ITEM i Product A Sales Price, S Variable Cost, V Forecasted monthly sales quantity, Q 20 9.8 2000 Product B 25 12.9 3000 Product C 18 7.5 1000 Product D 30 10.7 500 Product E 20 10.5 300 Product F 35 12.3 2000 Table 3. Data for Dapple Corp's outsourcing decision Using the information provided in the table calculate the following: The forecasted monthly revenue for each product, The unit contribution of each product, The forecasted monthly contribution for each product, The breakeven point in terms of monthly sales, The profit (or loss) of the business proposal, The quantity breakeven point for each item. (70%) 4b) Derive from first principles the "make verses buy" breakeven point. Define all notation and state all assumptions. (30%)