Two businesses, AB Ltd and CD Ltd, sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the current year ending March 31, are as follows: You are...

Two businesses, AB Ltd and CD Ltd, sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the current year ending March 31, are as follows:

You are required to:

1. Calculate the break-even points of each business; and

2. State which business is likely to earn greater profits in conditions of: (a) heavy demand for the product, (b) low demand for the product.