Hi, I will need help with the solutions.

QUESTION 1 Solent Ltd makes a product called the Sandals. The company's directors believe that the product is not as protable as it could be. At present the selling price of the Sandals is 5.75 and it incurs the following variable costs: Direct Labour 1.35 Direct Materials 1.75 Other Direct costs 0.40 The xed costs of production are 180,000 and the company currently sells 90,000 units. Required: (a) Calculate the break-even point (in units) of the Sandals for Solent Ltd. [25 marks] (b) Calculate the prot made on sales of 90.000 units. [25 marks] (c) The company decides to improve the product. It estimates that an advertising campaign to promote the new improved Sandals will cost 12,500. Improving quality will add 15p per unit to material costs and 5p per unit to labour costs. Hawaiian they believe this will allow them to Increase selling price by 25p and increase sales by 5%. Calculate the new prot gure for the improved Sandals. [30 marks] (d) Discuss the limitations of break-even analysis. [20 marks] QUESTION 2 One of the objectives of management accounting is to assist management in the process of planning, control and decision- making. Required: (a) Explain why management accounting is necessary, given that most businesses have to prepare nancial accounts in accordance with the law. [50 marks] (b) Briey describe the techniques by which the management accountant can achieve the above objectives. [50 marks]