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Budgeted information for Aberdale limited for the year ahead, analysed byproduct, is represented below.Sales units ( 0 0 0 s ) Variable Costs ( per

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Budgeted information for Aberdale limited for the year ahead, analysed byproduct, is represented below.Sales units (000s)Variable Costs ( per unit)Attributable Fixed Costs ('000)unit)Required:2state yoProduct|1100rassumptions.5.80275Product ll Product ll6.00337General overheads, which are apportioned to products as a percentage ofsales (i.e. total revenue), are budgeted at 1,668,000b) Recalculate the budgeted profit of Aberdale if Product Ill iseffect on ales of thea) Calculate the total budgeted profit for Aberdale Limited broken downby product. Please also show the profit per unit.5.20products. Please296[5 marks](5 marks]An increase in advertising spend is being considered by management, i.e.in additional to that which is already spent on Product I.c) Calculate the minimum extra sales units required of Product I to coveradditional advertising expenditure of 80,000. PIease assume all otherexisting fixed costs remain unchanged.[4 marks]elling rice of Product IL Please clearly state any assumptions mselling prices made.d) Calculate the increase in sales volume of Product Il that is necessary ine) Discuss three factors that influence management's decision onwhether or not the company should stop selling a loss-making product(5 marks][6 marks]
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