Music & More, a record store, has been facing significant pressure on sales following the challenge of music downloads over the last few years. As a result, it is no longer sustainable to keep open the various stores Music & more currently owns and it is planning to concentrate on a single new store. Two locations have been identified and the following financial information has been provided: Average CDs 9.99 Vinyl Records 21.50 Box Sets 57.50 Revenue Variable Costs 2.41 6.20 12.70 Sales Mix 50% 43% 7% Other Data Location A Location B Rent 600/week 1,200/week Council Tax 180/month 400/month Salaries Other Fixed Costs 8,000/month 11,200/month 1,100/month 2,700/month a) Explain the concepts of Relevant Range and Sensitivity in relation to Cost- Volume-Profit Analysis. b) Calculate (in rounded whole units): (3 marks) i) The contribution per unit (CPU) for each product line and the average CPU. (4 marks) ii) The monthly break-even point (BEP) for each of the possible locations of Music & More. (3 marks) iii) The CPU that would need to be achieved in Location B in order for the BEP of both locations to be the same. What percentage increase does that represent relative to the current CPU? Discuss whether you believe this to be an achievable target in Location B. (6 marks) c) Define the concept of Working Capital (or cash conversion) cycle. Discuss whether you'd expect a clothes retailer or a supplier of parts to a shipbuilder to have a longer cycle