Number 4 please

2. Springtime LTD expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed cost of operating the workshop for a month to 3000 $. Using the machine would reduce the labor time to half an hour per basket. The basket makers would still be paid 10$ an hour. How much profit would the business make each month from selling baskets a) Without the machine; b) With the machine? What is the breakeven point if the machine is rented? What do you notice about the figures that you calculate? 3. Calculate the contribution margin ratios a) without the machine; b) with the machine. 4. Fill in the table and calculate the margin of safety relating to each option (without and with the machine). What advice would you give Springtime LTD about renting the machine, on the basis of the margin of safety? without the machine (N of baskets) 500 with the machine (N of baskets) 500 (a) Expected volume of sales (b) Breakeven point Margin of safety (the difference btw (a) and (b)) 2. Springtime LTD expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed cost of operating the workshop for a month to 3000 $. Using the machine would reduce the labor time to half an hour per basket. The basket makers would still be paid 10$ an hour. How much profit would the business make each month from selling baskets a) Without the machine; b) With the machine? What is the breakeven point if the machine is rented? What do you notice about the figures that you calculate? 3. Calculate the contribution margin ratios a) without the machine; b) with the machine. 4. Fill in the table and calculate the margin of safety relating to each option (without and with the machine). What advice would you give Springtime LTD about renting the machine, on the basis of the margin of safety? without the machine (N of baskets) 500 with the machine (N of baskets) 500 (a) Expected volume of sales (b) Breakeven point Margin of safety (the difference btw (a) and (b))