Fantastic Creamery Pte Ltd ('FC') manufactures and sells ice-cream a) Assuming the table below shows the favourability of the variances of the company that you have chosen. Based on the table, suggest 2 ways to improve the profitability of the business with respect to the relevant variances. State your assumptions. Name of Variance Favourable l Unfavourable Sales price Favourable Sales volume Unfavourable Direct Materials price Favourable Direct Materials quantity Unfavourable Direct Labour pricelrate Unfavourable Direct Labour efficiency Favourable [4 marks] b) F0 is evaluating whether to invest in a software which can help handle the company's online orders. FC's cost of capital is 10% per annum. b) F0 is evaluating whether to invest in a software which can help handle the company's online orders. FC's cost of capital is 10% per annum. The table below shows the relevant cash flow and present value of the above investment. m _Present value - $3 300 - $3,300 0 , ' W 2 $1,452 $1 ,200 3 $1,283 $964 Total $645 - $36 Determine whether FC should invest in the new software. Explain. c) Based on the decision to invest in the new software. Provide an example of a relevant and an irrelevant cost. Explain why you would classify this cost as a relevant and irrelevant cost respectively