(ii) Comment on the figures in the statement prepared in (a)(i) above. (4 marks)

(ii) The statement of product profitability shows that CTC is forecast to achieve a profit of $2·185 million in 2008 giving aprofit:sales ratio of 11·9%. However, the forecast profit in 2009 is only $22,000 which would give a profit:sales ratioof just 0·1