The accounting elements of ABN, Lda for the month of May / N are as follows:

- Production: 10.000 ton

- Industrial variables costs: 10.000,00 euros

- Industrial fixed costs 6.000,00 euros

- Non-industrial variable costs: 1.700,00 euros

- Non-industrial fixed costs: 9.000,00 euros

- Sales: 8.500 ton. To 3,2 euros / ton

Requests:

a) Determination of the critical point of the company and the safety margin, commenting the

results;

b) What is the price that the company should practice so that the critical point had been

located in 7.000 ton.;

c) Given the favorable market outlook, the company plans to increase its production and

sales to 12.000 tons, which could make using one of two options:

- H1: Investment that would lead to an increase in industrial fixed costs 90%;

- H2: An increase of the staff costs of 3.100,00 euros, and an investment that will result in

increase of industrial fixed costs 40%.

What is the alternative to choose?