1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity based costing system. Products Media pad Yoga pad 13,900 9,900 980 590 Units of Production Direct labor hours Number of orders placed Machine set up hours 32 25 35 35 48 40 No. of Deliveries No.of production runs 22 15 Machine set up costs 38,800 Machine running costs 48,800 Procurement costs 48,800 Delivery costs 37,800 You are required to calculate the cost per unit of Media pad and Yoga pad under ABC (2 marks) and Traditional costing method (2 marks) methods. Compare the cost per unit of production and suggest which costing method is good (1 marks). (5 Marks) 2. Al Lama Traders manufactures kid's toys. It makes two products: battery bike and gaming pad in production plant named 'star kids'. The products details, sales plan and forecast are shown in the table. 3rd Quarter Units 4th Quarter Units Product 1st Quarter Units Battery bike 6,900 Game pad 9,900 2nd Quarter Units 11,900 10,900 13.900 12.900 14,900 13,900 Assume that the selling price is OMR 29 per unit for battery bike and OMR 25 per unit for game pad. Average sales return is 10% of total sales and the discounts and bad debts amounting to 2% of the total sales. i) You are required to prepare a Sales Budget for the year 2022. (4 Marks) ii) Assume that the company expects a competitor to enter into the market. In such case, the sale of total units in each product is expected to decrease by 8%. However, the management wants retain the total sales value. Analyse and suggest a suitable way to achieve this sales target. (1 Mark)