Budget Operating Income Statement Unit A Sales 2,000 Raw Materials 1 (Kg) 8,000 Direct Labour (DLH) 20,000 Variable Overhead (DLH) 20,000 B Total Variable Cost C Contribution Margin (A - B) D Fixed Overhead Cost E Profit (C-D) Actual Operating Income Statement Unit A Sales Raw Materials 1 (Kg) Direct Labour (DLH) Variable Overhead (DLH) B Total Variable Cost C Contribution Margin (A - B) D Fixed Overhead Cost E Profit (C-D) 1,800 10,000 22.000 22,000 Price (RM) 100.00 200,000.00 Total (RM) Prepare a variance analysis of the items below between the budget and the actual results of the company. The variance analysis should include price, usage and 16,000.00 variance analysis if appropriate. Identify any specific problem that the company 50,000.00 should address. 2.00 2.50 2.00 40,000.00 106,000.00 i. Raw Materials ii. Direct Labor 94,000.00 iii. Variable Overhead 50,000.00 44,000.00 Price (RM) Total (RM) 180,000.00 The company decided to make some changes to its operations based on the actual results and the variance analysis. The following plan is being discussed. 100.00 1.50 15,000.00 i. Plan 1: Increase Fixed Cost by 10% and reducing the direct labor wages and the effect is the actual total variable cost will reduce by 15%. 2.00 44.000.00 2.00 44,000.00 103,000.00 77,000.00 ii. Plan 2: Selling off one equipment as it is found to be underutilized. This decision will reduce the actual fixed cost by 10%, but actual total variable cost will go up by 15% 50,000.00 27,000.00 111. Plan 3: Increase the actual price of the product by 15% and use higher grade raw materials. Using the higher grade materials will increase actual total variable cost to 10%. Calculate the break-even point of unit sales for each of the plan. Which plan would you recommend based on the break-even calculations and what are your ethical consideration