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I need help with this please.

Brixton Industries PLC is a UK large company with two divisions: Bingley Products and Shipley Confectioneries. The Chief Executive (CEO) is concerned about some problems in these two divisions relating to profitability and performance measurement system. He believes a reappraisal of the business could resolve the problems currently faced by the company. Bingley Products Bingley Products produces three products: Widgets, Gadgets and Helios. The Helios product was introduced three years ago, and since then sales volume has been increasing tremendously to the extent that it was catching up with the other products that the company started producing ten years ago. Furthermore, Helios profits have also been good for a new product. However, business on the other two products (Widgets and Gadgets) has been difficult. Specifically, profits have fallen even though the sales volumes of these two products have remained steady since the introduction of the Helios product. The board of directors is very worried about this, especially regarding the Widgets product which the board has always believed to be the company's 'cash cow'. The CEO feels that the traditional absorption costing systems used were the main cause of these difficulties. Consequently, the board of the company has decided that a fundamental reappraisal of the business is now necessary if the company is to continue in business in the long run. You have been appointed a management accounting consultant by the management of Brixton Industries PLC to advise them on the reappraising the business. The following budget information relating to the next year has been provided to you as a start.

Widgets Gadgets Helios Sales and production (units) 50,000 40,000 30,000 Selling price ( per unit) 45 95 73 Direct labour and materials ( per unit) 32 84 65 Machine hours per unit in machining dept 2 5 4 Direct labour hours per unit in assembly dept 7 3 2.

(ii) Comment on the results in above and explain clearly the differences between product profitability using absorption costing and activity-based costing. (b) In relation to the company's fundamental reappraisal of its business, Discuss how helpful the information you have prepared in

(a) is for this purpose and how it might be revised or expanded so that it is of more assistance.

(ii) Advise what other information is needed in order to make a more informed judgement