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Transcription of this question: 2.Jill AndersonJill Anderson operates a restaurant. Although Jill’s meals are viewed as being excellent quality,sales are slowing. Jill is considering replacing existing meals with gluten-free meals. The followingfinancial and forecast information is for the month of May 2018. Jill’s restaurant can only produceeither existing or gluten-free meals.Table 1: Existing mealsAverage price of existing meals = $8Rent = $2000 per monthVariable cost per unit of existing meals = $5Sales of existing meals served = 800 per monthJill’s salary = $400 per month, which is paid irrespective of the level of salesTable 2: Estimated costs and price if Jill produces the gluten-free mealsTable 2: Estimated costs and price if Jill produces the gluten-free mealsAverage estimated price of gluten-free meal = $14Variable cost per unit of gluten-free meals = $10Sales forecast of gluten-free meals = 1200 per monthFixed cost increase for new machinery per month = $400A local gluten-free manufacturer, which is not part of Jill’s existing supply chain, has offered tosupply already prepared gluten-free meals at $8 per meal. Jill is unsure whether to make or buythe gluten-free meals.(a)(b)(c)Define the term supply chain.Calculate:0)(ii)(iii)(iv)the total contribution of existing meals sold per month (show all your working);the total profit or loss on existing meals for May 2018 (show all your working);the forecast profit or loss if Jill decides to make and sell gluten-free meals (showall your working);the contribution per unit of a gluten-free meal if Jill decides to buy-in the gluten-free meals (show all your working).Using your answer from (b) (iii) and (iv), explain whether Jill should buy-in or make thegluten-free meals herself.[2][2][2][2]

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