Question 6 Blodau Ltd. produces three products, Recently, one of its suppliers has suffered from shortages of raw material. The details are as follows: Required a. Advice the managers which products should be manufactured, and which should be discontinued. (1 Mark) your recommendation? (1 Mark) c. Assume the business's fixed costs are all shared, not separable, and Direct Material 2 costs f0.10 per ml. You have been advised that due to a shortage of Direct Material 2 the business can only secure from suppliers a total of 1,100,000ml in the current year. Advise the business on a sales mix that will maximise its contribution and calculate this contribution profits. Numerically justify your recommended sales mix. (2 Marks) d. Assume the fixed costs are separable. The business plans to launch a new advertising campaign costing 10,000. Calculate its expected profit for the upcoming year, the breakeven volume and the marein of safety. (2 Marks) e. The advertisement agency has offered the business an option to pay a commission of fo. 05 for each unit of sales, as opposed to a fixed annual fee of 10,000. If the business accepts this offer, what will its expected profit, break-even volume and margin of safety be for the upcoming period? (2 Marks) f. Based on your calculations above, would you recommend the business to accept the fixed expense, as cited in point d. or the variable, as cited in e.? (2 Marks) TOTAL MARKS =10