Glamour Fashions Ltd sells designer clothing and is about to launch a new designer clothing range onto the market. It needs to prepare a budget for the coming year and is trying to decide whether to launch its product at a price of 50 or 60 per unit. The following information has been obtained from market research: - Volume production costs would be 36 per unit for production volumes up to and including 85,000 units each year. However, if production exceeds 85,000 units each year, the variable production cost per unit would fall to 34 for all units produced. - Advertising and marketing costs would be 480,000 per annum at a selling price of 50 and 510,000 per annum at a price of 60. - Fixed rental costs would be 320,000 per annum. Requirement (a) Calculate each of the six possible profit outcomes which could arise for Glamour Fashions Ltd in the coming year. 8 Marks (b) Calculate the expected value of profit for each of the two price options and recommend, on this basis, which option Glamour Fashions Ltd would choose. 4 Marks (c) Briefly explain the maximin decision rule and the maximax decision rule and identify which price should be chosen by management if they were to take either of these approaches. 4 Marks (d) Discuss the factors which may give rise to uncertainty when setting budgets. Total 20 Marks