Richard runs a small coffee stand offering standard coffee [with or without milk) during the mornings. on campus. The following are the costs per cup of coffee compiled for July. _July Nrunber of cups sold Cost of disposable cups Cost of coffee Cost of milk and sugar Rental of coffee stand Rental of coffee machine Salary of staff Total cost _ Cost of coffee per cup Average selling price per cup of coffee Prot per cup In August= munber of cups sold was only 63% that of July. Based on the prot per cup= Richard expects a prot of $3TBU ($0.53 x ). (a) Using cost behaviour analysis. explain why Richard should not earn $3T3 for August. Compute the correct prots\" loss for August if costs and selling price remained unchanged? (b) Richard is thinking of expanding his coffee business to 1'0 other university and polytechnic campuses. In order to encourage his workers (who are students from each campus] to increase sales. Richard is considering giving them a sales commission of 5 cents for every cup of coffee sold. As Richard is not able to be physically at all coffee stands in the mornings. he will have to rely on his workers to prepare and sell coffee= collect and record daily takings. and inform him when they need replenishment of coffee. cups and other ingredients. Richard expects to maintain the price per cup of coffee at $3. for at least the coming year. (i) Give three (3) examples of management accounting information that will help Richard evaluate and choose the campuses to open his next three outlets. (Be specic and explain how such information would support his decision.) (ii) Using your knowledge of organizational architecture [0A). evaluate if Richard's proposed commission plan would work? Explain