Last year Brackley Electronics had a good financial year. Their Profit and Loss Account for the financial year is shown in Table 1.1 and their Balance Sheet at the end of the financial year is shown in Table 1.2. Table 1.1 Profit and Loss Account for Brackley Electronics for the 2020/21 financial year Profit and Loss Sales Revenue 10,500,000.00 Cost of Sales 4,500,000.00 Gross Profit 6,000,000.00 Overheads 4,500,000.00 Net Profit 1,500,000.00 Table 1.2 Balance Sheet for Brackley Electronics as at the end of the 2021/22 financial year 15,000,000.00 Tangible fixed assets Current assets Cash in Bank Debtors Stock Current liabilities f f 75,000.00 120,000.00 114,000.00 95,000.00 214,000.00 Net Current Assets E f 4,500,000.00 Long Term Liabilities Net Assets 10,714,000.00 Brackley Electronics has researched the market development and production costs of a possible new product it could produce. It forecasts it will cost 650,000 to develop the product, a cost it will incur in 2022. The forecast product sales volume and selling price is shown in Table 1.3