01 Tischler the Honey Man (THM) purchases honeycombs from beekeepers for $220 per kilogram. THM produces two main products from the honeycombs-honey and beeswax, Honey is drained from the honeycombs, and then the honeycombs are melted down to form cubes of beeswax. The beeswax is sold for $170 per kilogram The honey can be sold in raw form for $3.20 per kilogram. However, some of the raw honey is used by THM to make honey drop candies. The candles are packed in a decorative container and are sold in gift and specialty shops. A container of honey drop candies sells for $520 Each container of honey drop candies contains three quarters of a kilogram of honey. The other variable costs associated with making the candies are as follows: Decorative container Other Ingredients Direct Labour Variable manufacturing overhead Total variable manufacturing cost 50.60 0.35 9.40 0.20 $1.55 The monthly fixed manufacturing overhead costs associated with making the candles follow $3,990 Master candy maker's salary Depreciation of candy-making equipment Total Fixed manufacturing cost The master candy maker has no duties other than to oversee production of the honey drop candies. The candy making equipment is special-purpose equipment that was constructed specifically to make this particular candy The equipment His no resale value and does not wear out through use A salesperson is paid $2,039 per month plus a commission of 5% of sales to market the honey drop candies Total Fixed manufacturing cost $4,420 5 The master candy maker has no duties other than to oversee production of the honey drop candies. The candy making equipment is special purpose equipment that was constructed specifically to make this particular candy. The equipment has no resale value and does not wear out through use. A salesperson is paid $2,039 per month plus a commission of 5% of sales to market the honey drop candies. The company had enjoyed robust sales of the candies for several years, but the recent entrance of a competing product into the marketplace has depressed sales of the candies. The management of the company is now wondering whether it would be more profitable to sell all of the honey rather than converting some of it into candies. Required: 1. What is the minimum number of containers of candy that must be sold each month to justify the continued processing of honey into candies? (Do not round intermediate calculations and round your final answer up to nearest whole number.) Minimum number of certainers 2. Assume that TMH currently sells 2.200 containers of honey drop candles and believes that it can sell 3.200 containers provided i increases the sales commission paid to salespersons. What is the maximum sales commission it can pay las percentage of sales revenue) in order to be no worse off in terms of its current profitability? (Do not round Intermediate calculations and round final answer to 1 decimal place.) 90 Maximum sales commission (as percentage of sales revenue)