the rest info is in the other 4 pics!!

Catherine Smith, the company sales manager has commented that product 'Sun' (Order 1102) is not performing well and the company profits would increase if this product was removed from the range. Task 4: a. Re - calculate the gross profit (and gross profit margin) if product 'Sun' is removed from the production and sales schedule. Note: It has been established that, if product 'Sun' was removed from the catalogue, specific fixed cost savings of 12,800 would be made. 4 Marks b. Draft a memo to Catherine Smith in reply to his comment (with clear explanatory supporting reasons to a non-accountant). 7 Marks Note: Your memo should be prepared in a good style and show effective skills in written communication and "quality of information' aspects 8 200 990 Materials movements 900 400 500 1,800 Task 5: a. Explain 'Activity - Based Costing (ABC) as an alternative to full absorption costing and discuss the potential benefits that ABC might bring to production and information systems of Fabien Ltd Note: Your written explanations should be effectively communicated and should include notes on: The reasons for the development of ABC The 'Activity - Based' concept The process of an ABC system development The potential benefits (if any) you feel could be achieved by the introduction of an ABC system for Fabien Ltd 10 Marks . . . b. Recalculate the gross profits (by product an in total) after allocating fixed production overheads to products using an activity based system 10 Marks The task 5 b. mark include marks allocated to short descriptive notes to workings (