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Legacy Roofing Global Ltd specialises in roofing sheets manufacturing producing three variants below: 1 . Basic this is transparent mainly for use on garden sheds.

Legacy Roofing Global Ltd specialises in roofing sheets manufacturing producing three variants below:
1. Basic this is transparent mainly for use on garden sheds.
2. Standard standard quality house roofing sheets.
3. Premium high quality house roofing sheets.
Each of these roofing sheets uses Special Weatherproof Material which blocks outside weather from affecting indoors. Due to industrial actions, the maximum supply of the Special Weatherproof Material as confirmed by Protect Supplies Ltd, the supplier is 312,300 metres.
Maximum market demand and resource requirements of each of these roofing sheets for year 2024 are shown below:
Budgeted data year ending 31 August 2024
Basic Standard Premium
Maximum demand 11,00031,00023,000
Special Weatherproof Material per sheet (metres)2 Metres 5 Metres 6 Metres
Legacy Roofing Global Ltds employs a low cost and no-frills strategy aiming value for money delivery to its customers. To curtail high cost of stock storage, Legacy Roofing Global Ltd operates on a just-in-time production (JIT) method so that opening and closing inventory levels of the Special Weatherproof Material are zero.
Without mandate, Amelia Rose Legacy Roofing Global Ltds Sales Director has already accepted an order for 12,000 Standard Roofing Sheets Contract to Rolco Construction Group that, if not fulfilled, would incur a financial penalty of 18,000. This order is not included in the Standards maximum market demand figure. This implies Legacy Roofing Global Ltd should prioritise fulfilment of the Standard Roofing Sheets Contract ahead of normal annual demand requirements. The contract selling price per Standard Roofing Sheet is the same as normal Standard Roofing Sheets.
Legacy Roofing Global Ltds directors need to know whether they should go ahead and satisfy the contract and then prioritise production in the normal way or whether it should consider breaching the Rolco Construction Groups Standard Roofing Sheets Contract.
You have been provided with the following actual results for years ended 31 August 2022 and August 2023:
Actual results for year ended 31 August 2022
Basic Standard Premium Total
Sales (Number of sheets)7,80024,02017,860
Sales Revenue ()109,590473,194430,4261,013,210
Raw Materials ()24,960112,89496,444234,298
Direct Labour ()31,200127,306128,592287,098
Semi-Variable Overheads ()42,20076,35084,180202,730
Total Costs 98,360316,550309,216724,126
Profit/(Loss)()11,230156,644121,210289,084
Actual results for year ended 31 August 2023
Basic Standard Premium Total
Sales (Number of sheets)8,30026,34021,320
Sales Revenue ()116,615518,898513,8121,149,325
Raw Materials ()26,560142,236136,448305,244
Direct Labour ()42,330165,942172,692380,964
Semi-Variable Overheads ()43,10082,43098,740224,270
Total Costs 111,990390,608407,880910,478
Profit/(Loss)()4,625128,290105,932238,847
The selling price per roofing sheet, raw materials, other variable overheads and labour costs per roofing sheet for year ending 31 August 2024 will be the same as those in year ended 31 August 2023.
Required:
Use Management Accounting techniques for example High-Low Method where necessary and applicable.
3.1. In light of the scenario above, rank these three roofing sheet variants (Basic, Standard and Premium) in the order in which they must be produced by Legacy Roofing Global Ltd Rank 1 being the one to be prioritised. Clearly show your workings.
(3 marks)
3.2. Prepare a budgeted production schedule and a Marginal Costing Income Statement (analysed by product) the year ending 31 August 2024 assuming that the Standard contract is honoured. [3 marks for the Production Plan, 5 marks for the Marginal Costing Income Statement]
(8 marks)
3.3. Prepare budgeted production schedule and a Marginal Costing Income Statement (analysed by product) for the first half of 2018 assuming that the Standard contract is not honoured. [3 marks for the Production Plan, 5 marks for the Marginal Costing Income Statement]
(8 marks)
3.4. Considering quantitative and qualitative issues, critically evaluate then advise Legacy Roofing Global Ltds Directors whether to accept or reject the Rolco Construction Groups Standard Roofing Sheets Contract.
(4 marks]
3.5. You have now been advised that a new roofing sheets manufacturer that will compete with Legacy Roofing Global Ltd has been established that would force Legacy Roofing Global to reduce its selling price per roofing sheet by 15% in 2024. Protect Supplies Ltd, the supplier of Special Weatherproof Material has also hinted that the price of the Special Weatherproof Material might increase by 10% in 2024.
Assuming these changes (15% selling price per sheet reduction and a 10% increase in the Special Weatherproof Material) answer all the quuestion properly

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