Question 6 (20 marks) Confused Limited is thinking ahead about how to increase its sales during the next year. There are four mutually exclusive options that it is seeking to evaluate: Option 1: reduce the selling price per unit by 15 per cent Option 2: improve the product resulting in an increase in the variable cost per unit of 1.30 Option 3: spend 15,000 on a small advertising campaign Option 4: improve factory efficiency by purchasing more machinery at a fized extra annual cost of 22,500 The previous year saw sales of 20,000 units with the following cost details: Sales 200.000 Variable costs 150,000 Fixed costs 40,000 Profit 10,000 These cost relationships are expected to hold true in the next year. Required: 1) Evaluate each of the four options for the business in terms of: break even in units profitability (assuming the business wishes to achieve the same profit as last year) (10 marks) II) Based on your calculations in parti) above, state with reasons which option you would recommend for the business. You should also refer to any other relevant (6 marks) contextual information in justifying your recommendation