3. After studying the cost incurred over the past 2 years for one of its products, skeins of knitting yarn, tacos has selected 4 categories of selling costs and chosen cost drivers for each of the cost. The selling cost actually incurred during the last year and the cost drivers are as follows: Cost category Amount Cost driver Sales commissions 775,000 Boxes of yam sold to retail stores Catalog 395,400 Catalog distributed Cost of catalog sales 205,000 Skeins sold through catalog Credit and collection 70,000 Number of retail orders Total selling cost 1,445,400 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. Order size Catalog sales Retail sales Small 1-10 skeins 1-10 boxes Medium 11-20 skeins 11-20 boxes Large Over 20 skeins Over 20 boxes An analysis of the previous years records produced the following statistics. Small Medium Large Total Retail sales in boxes (12 skeins per box) 2100 45500 78500 126,100 Catalog sales in skeins 79500 52500 44500 176,500 Number of retail orders 900 24500 3200 28,600 Catalog distributed 254500 211500 125500 591,500 Required: 1. Prepare s schedule showing total selling cost for each order size and the per skein selling cost within each order size. (50 points) 2. Explain how the analysis of the selling costs for skein of knitting yarn is likely to impact future pricing and product decisions of the company 2. Explain how the analysis of the selling costs for skein of knitting yarn is likely to impact future pricing and product decisions of the company