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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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