Carefabric is a home$-$based business run by Margaret Parry. She makes a small range of towelling and other products for children. The products are advertised on her website and she distributes about $70$ percent of output to retailers in the Southwest on a sale or return basis. The remaining $30\%$ is sold direct to one off customers.

Recently she has concentrated more on design and has employed someone full time to do most of the manufacturing $-$ although Margaret still helps out when the orders pile up$.$ One of the new products Margaret has recently added to her line is a skin$-$friendly suit for small children.

Made from natural materials, some costs are given below.

Fabric $$660$per unit

Other materials $$360$ per unit

Packaging $$185$ per unit

Manufacturing $$1,700$ per unit

Overheads $$7,800$ per month

Insurance $$2,500$ per quarter

When setting wholesale price for her products, Margaret just adds on an $80\%$ markup. This method has generated good sales and profits in the past and she has no reason to change a successful strategy. Margaret plans to produce $500$ skin$-$friendly suits in the next trading year.

Use a table to show the following calculations based on Margaret's projection for the next year.

$($a$)$ Calculate

I. Total fixed cost $(1$ mark$)$

II$.$ Total variable cost $(1$ mark$)$

III. Total cost $(1$ mark$)$

IV$.$ Average cost $(1$ mark$)$

V$.$ Price per skin$-$friendly suit $(2$ mark$)$

Continued....

$2$

$($b$)$ During the year Margaret managed to sell $350$ suits.

I. Calculate the total revenue. $(1$ mark$)$

II$.$ What is the value of the unsold stock based on wholesale pricing? $(1$ mark$)$

III. Does Margaret manage to make a profit, break even or a loss? Give the $ value. $(2$ mark$)$