ocr: Question The management accountant also makes the tollowing profit and loss account forecast in respect of the proposed investment: Sales 360,000 Direct Costs (all variable) 95,000 Overhead Costs 90,000 (all fixed but excluding depreciation) 185,000 Profit before depreciation 175,000 Depreciation of plant and machinery 80,000 (straight-line basis: E400,000 over 5 years) Net Profit 95,000 Use investment appraisal techniques to assess whether or not the company should make the proposed diversitication into the compact disk market.
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