Question- Fudge Itd operates at three factory sites producing a closely related product range. The 20x4 budget for fudge Itd's operations is as follows: Croydon Luton Southen Costs: 000 000 000 Variable 475 2,200 1,000 Fixed (site) 375 1,300 Fixed (central) 50 200 Sales 1,000 4,000 2,000 Profit 100 300 250 650 100 The lease of the Croydon site expires at the end of 20x4. Four alternative options have been identified for the 20x5 operations: Renew the Croydon site lease at an additional annual rental of 50,000. Shut the Croydon site and franchise Croydon production to another manufacturer at a 1.5 per cent commission on sales. Shut the croydon site and switch production to luton; this would involve and additional 250,000 per year fixed costs at luton and additional transport costs on production transferred amounting to 7.5 per cent of sales. Shut down the Croydon site and switch production to southend; this would involve additional fixed costs of 200,000 per year at southend and additional transport costs on production transferred amounting to 10 per cent of sales. Requirements Evaluate the options and advise: Which option is most attractive on purely financial grounds