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A2. ABC Industries Ltd makes three different toys, the fixed cost of operating for a month totals $1500. The business pays the toy makers $8

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A2. ABC Industries Ltd makes three different toys, the fixed cost of operating for a month totals $1500. The business pays the toy makers $8 an hour. The toy makers are all on contracts such that if they do not work for any reason, they are not paid. The ability to provide the toys is limited by the availability of labor. The other details are as follows: Product A B $ $ $ Selling price per unit 150 120 195 Material cost (15) (24) (33) Labor time per unit 7.5hours 4.Shours 9hours 1) Which toy should be given priority to the production and why? (10 marks) 2) Assume ABC Industries Ltd would like to improve the contribution for the business, please suggest what practical steps could be taken that might lead to a higher level of contribution? (3 marks) 3) Assume ABC Industries Ltd only produce one toy, that is toy A. The fixed cost of operating for a month still totals $1500. What is the break-even point for toy A and what is your understanding of break-even point

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