You are approached by the sales manager to detailed report to him based on your findings

as follows:

(d) (i) Comment on the positions shown by the charts and your calculations and advice on

whether proposal 1 or 2 would be adopted by Brunswick. (10 marks)

(ii) Explain to the sales manager on ANY THREE (3) managerial uses of cost-volume-

profit analysis in decision making. (6 marks)

(iii) The usefulness of CVP analysis is restricted by its unrealistic assumptions such as

constant sales price at all levels of activity.

Explain to the sales manager on ANY THREE (3) limitations and THREE (3) advantages

of cost-volume-profit analysis.