Drinks Plc plans to produce a new drink called Teatime. It is anticipated that variable costs will amount to 50p (0.50) per drink. The company will produce Teatime in a processing facility with a capacity to produce 60,000 drinks a year. Fixed costs are anticipated as being 20,000 per year. The company plans to supply to retailers at a price of 90p (0.90) per drink. Required: a) Calculate the break-even volume and the break-even revenue at the projected price. (4 marks) b) Calculate the break-even sales price to retailers if the factory is used at full capacity. (6 marks) c) The company is thinking of setting the price at 1.10 per drink and launching an advertising campaign at a cost of 6,000 how many drinks will need to be sold to achieve a profit of 10,000. (5 marks) d) Compare and contrast absorption pricing and marginal cost pricing (18 marks) A major health food chain has approached Drinks Plc to ask if the company would be willing to provide 10,000 drinks in the forthcoming year at a price of 85p (0.85) per drink. The company will only accept 10,000 drinks. Assume that the company has finalised production and sales plans for the year at a price of 0.95 and a volume of 55,000 drinks. Required: e) Assess whether Drinks Plc should accept this special order and calculate the company's profit if the order is accepted. (8 marks) f) Discuss other factors Drinks Plc should consider before accepting special orders