Question 2 A company manufactures only one product which is supplied in 3 models, viz: 'Utility', 'Standard', and 'Deluxe'. The Accountant has compiled the following cost information for the year 2014: Utility 10,000 150 80 Product Model Annual Sales in units Price per unit () Direct Materials () Direct Labour () Fixed Overheads absorbed () Total cost () Net Profit / (Loss) per unit () Standard 6.000 200 100 20 50 170 30 | Deluxe 4.000 300 195 40 100 335 (35) 16 40 136 14 Using calculations to support your arguments, what decision options would you propose regarding the 'Deluxe' model, explaining the possible impact of each option, and stating reasonable assumptions underlying your proposals. (100 Marks)