Muammar sells boxes of spices to markets. Workers in Muammar's business are paid on a piece rate basis. Table 1 gives financial details of the business in 2012. Table 1 Fixed costs per month $10000 Employee wages $2 per box Raw materials $3 per box Marketing costs $1 per box Selling price $8 per box Sales per month [average] 9000 boxes

1. (a)Identify two examples of fixed costs for Muammar's business.[2]
2. (b)Identify two reasons why sales may vary from month to month.[2]
3. (c)Calculate the annual profit that Muammar made in 2012.[4]
4. (d)Identify and explain one advantage and one disadvantage to Muammar of using piece rate to pay his workers.[6]
5. (e)Muammar is planning to change the selling price of the boxes to $7 each. Do you think this change would benefit the business? Justify your answer.[6]