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a) Calculate the variable and fixed cost elements of Ultimate semi-variable costs, using the high-low method (3 marks) b) Advise the directors on which sales

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a) Calculate the variable and fixed cost elements of Ultimate semi-variable costs, using the high-low method (3 marks) b) Advise the directors on which sales price for Standard would be most beneficial (9 marks) c) Calculate the number of units each brand needs to sell to break-even. (For Standard use the selling price you advised would be beneficial in part b).) (6 marks) d) Due to the forecast 25% growth in Ultimate sales, the Buyer is concerned that there may a shortage of a material LC10, which is used in the manufacture of both uniforms. Ultimate uses 1.25 metres and Standard 0.75 metres and the total supply could be limited to 20000 metres. Calculate the best production mix (7 marks) e) Prepare a budget to forecast the profit, based on the production mix you have calculated (5 marks) Total 30 marks

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