Data are as follows: RM3Q Demand units 110 000 RM4P Demand units 120 000 Materials per unit (5 per Materials per unit (5 per 610. 00 Labour (15 hours per unit) . Labour (18 hours per unit) 486.00 Variable overheads per Variable overheads per unit . unit 889.00 Total variable costs 1,680.00 Total variable costs 1,985.00 Proposed selling price 3,240.00 Proposed selling price 4,070.00 Fixed overhead costs are predicted to increase by 288,950,000 per year as a result of adding the two new products. Material is expected to be in short supply because of Brexit and is predicted to be limited to 40,000,000 kg in the coming year. Required: a. Calculate the breakeven point in number of units, and the prot or loss in assuming the company manufactures TR1X only. (5 marks) b. Prepare a production plan for all three products (in units) that makes the best use of the material available. (12 marks) c. Calculate the prot or loss that the company will make after adopting the production plan in (b) above. Present your results for (c) showing contribution from each product, contribution in total, and total xed overhead costs. (8 marks} d. Since traditional costing income statements are required by law and GAAP for the construction of the nancial statements for external reporting, explain why the management income statements should also be constructed according to variable costing principles. (15 marks) (Total 40 marks) Question 2 Blyth Batteries Ltd (BBL) manufactures Lithium-Ion batteries (TR1X) for the automotive industry. In the coming year, the company plans to sell 200.000 TR1X 48-volt batteries. which is the maximum expected demand for this type of battery. The variable cost and selling price data for the TR1X is as follows: Product ram 9 Materials per unit (5430 per kg) 425 on Labour (10 hour per unit) 270 00 Variable overheads per unit w Total variable costs 51307-00 Selling price 2*598'00 If BBL only manufactures TR'IX, xed overhead costs are predicted to be 124,000,000 in the coming year. Having built a new plant to increase manufacturing capacity, BBL is planning on introducing new models of battery RMSQ and RM4P which will serve new markets. The management team, worried about the declining market, is considering expanding their operations by manufacturing two other types of batteries. These other products (RM3Q and RM4P) use the same materials but different types of labour to the current TR1X product range. (QUESTION CONTINUES ON NEXT PAGE)