Pastels Ltd produces three brush sets; the artists set, the painters set and the make-up...
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Accounting
Pastels Ltd produces three brush sets; the artists set, the painters set and the make-up set.
The following data for each brush is available for the next quarter:
| Demand sets (units) | 150 | 300 | 350 |
|
| Artist | Painters | Make up |
|
|
|
|
|
| Sale Revenue per unit | 43 | 35 | 25 |
| Variable costs per unit | 37 | 27 | 16 |
| Allocated Fixed costs per unit | 7 | 2 | 4 |
| Profit per unit | (1) | 6 | 5 |
All brush sets use animal hair as follows:
|
| Artist | Painters | Make up |
| Hair per set (grammes) | 12 | 20 | 36 |
Discuss two qualitative (non-financial factors) the company should consider when sourcing animal hair from overseas suppliers
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