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Transcription of this question: 2.DuffJDDuffJD provides a laundry service for towels and sheets to three hotel chains in a major city,Hoyluk. It provides each hotel chain with trade credit.Competition in this market is increasing, as two rivals are planning to offer laundry services to hotelchains in Hoyluk.Table 1: Selected financial data for DuffJD for 2018Annual fixed costsVariable costs per itemPrice charged per item launderedNumber of Items laundered$75 000$0.50$2.00200 000[Source:@ International Baccalaureate Organization 2019](a)(b)(c)(d)Define the term trade credit.Using the financial data for DuffJD for 2018, calculate:(i) the contribution per unit per item laundered (no working required);(ii) the margin of safety (no working required).Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.Explain how an increase in competition may affect DuffJD’s margin of safety.[2][2]

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