A) Use CVP analysis to recommend whether the move to paper packaging is a good business decision. Discuss any relevant qualitative factors relevant to the decision. Show all workings. (6 marks)

B) The CEO of Primark wants to use your analysis from Part A to decide whether all Primark clothing lines should shift to paper packaging. Outline two reasons why this analysis does not give sufficient information for the CEO to make this decision.

CostLabourCostMaterialsCostFixedOverheadCostsExpectedSalesVolumeSellingPricePlasticPackagi$7/unit$4unit$2.5million300,000$20/unitPaperPackaging$7unit$5.50/unit$2.3million$200,000