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Transcription of this question: Deep Sea Catch (DSC)Deep Sea Catch (DSC) operates as a sole trader on an island popular with tourists. DSC specializesin supplying fresh fish to local hotels on a daily basis.The local government has given DSC a permit to catch a maximum Of 70 kilograms Of fish per day.However, there has been an increase in illegal fishing (without permits), in addition to overfishingby DSCS Other competitors (with permits), which has reduced fish stocks in the area. Given theincreasing competition among fish suppliers on the island, hotels will only pay a fixed price Of Sl Oper kilogram Of fish.DSCS cost Of operation and the quantity Of fish caught varies depending on factors such as weatherconditions, the availability Of fish, and the number Of competitors.Local hotels demand that:• the fish they buy meet strict national health and safety standards, to ensure the quality Of the fishfor touristsfish are caught ethically without endangering Other sea creatures, such as sea turtles or dolphins.An environmental pressure group is also pressuring the government for:more strict regulations on the fishing industries, targeting suppliers without permits• a reduction in the quantity Of fish that each supplier can sell• new legislation for a compulsory installation Of new and sophisticated technological equipmentfor ethical fishing.DSC is well known for fishing responsibly and within government legislation. However, the owneris worried about the possible high costs Of some Of the new legislation.Unsold fish is stored and kept in a refrigerator for up to two days. After two days, the stored fish issold to a processing factory for S4 per kilogram. For example, fish caught on Monday, but still notsupplied to the hotels by Tuesday evening, will be sold on Wednesday to the processing factory.DSC uses the system of last-in-first-out (LIFO) for the stock valuation. The table below shows atypical week’s supply offish at DSC:Day Of the week Kilograms Of fish caught by Kilograms Of fish suppliedMondayTuesdaWednesdaThursdaFridaySaturdaSundaDSC and the cost Of fishinb DSC20 @ $530 $820 $640 $520 @ $840 $840 $510202030203030(a)(b)(c)(d)Describe two features ofa sole trader.(i)(ii)(iii)Using the table above and the last-in-first-out (LIFO) method Of stockvaluation, calculate the value Of the closing stock Of fish on Sunday(present all your working in table format).Using the information provided, calculate DSC’s typical weekly grossprofit after taking into account the number offish sold to the processingfactory (show all your working).Calculate DSCS typical weekly gross profit margin (show all yourworking).Explain one advantage for DSC if they provide fish meeting nationalquality standards.Using the PEST model, examine the impact Ofthe external environment on DSC.[4 marks][8 marks][3 marks][2 marks][2 marks][6 marks]

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