t I b) a) Gumdrop Limited is a retail store with three departments in the same building. Each of these departments occupy equal share of the total area in the building. The latest financial results for these departments are as follows: < Department Women ($000s) < Sales Variable costs 1000 450 Fixed costs (shared 300 equally between the three departments) Net profit/(Loss) 250 Department Men Department Total ($000s) ($000s) < Children ($000s) < 500 700 2,2003 250 315 300 300 1,015 900 (50) 85 Since the Men's department is making a $50,000 loss, we should close it. 285 Required: < Do you agree with the decision to close the Men's department? Justify your answer with calculations and explanation by considering both quantitative and qualitative factors. Your organisation is deciding between producing or buying a component needed for the equipment that sell to the public. The cost of producing each unit of that component is made up of $4 direct material costs, $10 direct labour costs and $2 other variable costs. Alternatively, we could but the component directly from a local supplier for $18 each. < Required:+ Should we make or purchase this component? Why or why not? Your answer should include both quantitative and qualitative factors. All supporting workings are to be included. .