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hello can someone help please thanks in advance! Question 3 Scenario Gael Ltd makes a single product. The following budgeted information for the next year

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Question 3 Scenario Gael Ltd makes a single product. The following budgeted information for the next year is below. Currently, Gael Ltd has spare capacity. Calculate percentages to 1 decimal place. Required: a) Calculate the breakeven point in units. (2 marks) b) Calculate the margin of safety as a percentage. (1 mark) c) How will the margin of safety change if fixed costs increase by 30% and direct materials increase by 5% ? Show all your calculations. (4 marks) d) State and explain the assumptions of break-even analysis. How do the assumptions affect business decision-making? (4 marks) Further information At the moment, Gael Ltd uses a marginal costing approach for management accounting. The production manager states that an absorption costing statement would be more useful because 3,000 of the 15,000 fixed overheads are fixed administration overheads; the remainder are fixed production overheads. The production manager has requested two monthly statements; one prepared on an absorption costing basis; the other using marginal costing. Use the budgeted information in the table above. Assume that exactly 300 units are produced and sold each month. Required: e) Prepare an absorption costing statement for one month's production. (4 marks) f) Prepare a marginal costing statement for one month's production. (4 marks) g) Explain the different purposes and benefits of both marginal and absorption costing approaches. Use your answers in e) and f) to illustrate your explanation. (6 marks)

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