A souvenir shop makes the following forecast for one year’s sales and costs.

A souvenir shop makes the following forecast for one year’s sales and costs.

Forecast	ÂŁ
sales	80,000
variable costs of souvenirs purchased	(26,000)
fixed labour costs	(30,000)
other fixed costs	(5,000)
Profit	19,000

Required

Prepare tables showing the sensitivity of the profit forecast to each of the following:

(a) a 1 per cent change in sales and variable costs,

(b) a 1 per cent change only in the materials cost of souvenirs purchased,

(c) a 1 per cent change only the labour costs, and

(d) a 1 per cent change only in the other fixed costs.