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Transcription of this question: Belluno Frames (BF)Belluno Frames (BF) manufactures high-quality frames for glassesmage removed for copyrigh (spectacles). Like many other firms in the private sector in northernItaly, the business is small, family-owned, and operates as a privatelimited company. Giovanni and Elda Rizzo own 100% Of the shares,which their son Antonio will inherit. Giovanni designs the frames. Antonio and two employeesproduce them. Elda is responsible for the administration.BF is located in a building that Giovanni and Elda own, near their house, 42 kilometres outsideOf Belluno. Antonio and the two employees live in the same village as BF. The road to Bellunois narrow, with tramc that moves very slowly because Of farm vehicles. Antonio, who wants thebusiness to grow, has asked his father to rent a building in the industrial park in Belluno with goodroad access. BFS new location would be closer to suppliers and customers. It would also improveBFS visibility.Currently, BE sells on average 1300 frames per month. Each frame is sold at an average price of €24.Below are the costs (all figures in e) for BF at its current location and if it moved to the industrial parkin Belluno.Monthly fixed costs:Monthly fixed costs:InsuranceRentSalaries (Giovanni and Elda)Other employees’ salariesLease on e ui mentVariable costs per frame:MaterialDelivery costsCurrent location400360036001400Current location14Industrial park(new location)4002200380039001400Industrial park(new location)13.50.1Antonio believes that BFS sales will grow on average to 1700 frames per month in the new location.TO reach that level, Antonio suggests that BF Offer extra financial rewards in addition to their usualsalaries to employees after 1300 frames have been sold each month (the current monthly average).Giovanni and Elda are reluctant.(Question I continued)(b)(c)(d)(i) Define the term private sector.(ii) Identify two advantages for BF Of operating as a private limited company.Calculate for BF per month at the current location (show all your working):(i) the break-even level Of output.(ii) the margin Of safety.(iii) the profit or loss at the current level Of 1300 frames sold.Construct a fully labelled break-even chart for BF at the current location.Examine one factor that might improve employee motivation and one factor thatmight worsen employee motivation if BF moves to a building in the industrialpark in Belluno.[2 marks][2 marks][2 marks][2 marks][2 marks][5 marks][5 marks]

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