Produce a business report in good style, that reports on the following issues:-
Calculations on the expected level of sales that you believe need to be made to break even. Back this up with further calculations that show risk in terms of margin of safety. Ensure that you justify any calculation assumptions that you make and comment on the results obtained
Discuss the issues that may arise in using the current absorption costing system based on labour hours. Discuss the appropriateness of changing to an activity-based costing (ABC) system for product costing and pricing for the business.
Provide recommendations as to the adequacy of the current prices that the company adopts in relation to the prices charged by its competitors. Suggest if the price should be adjusted in the light of current market conditions.
Discuss some of the alternative measures of performance that could be incorporated in the financial performance measures that the business uses at the moment.
