George has set up a jewelry production company. The company specialized in making diamond rings. Last year he engaged a public accounting firm that completed a financial audit. auditor recommended that George should set up a process cost-accounting system to bet forecast and control expenses. He has done this; however, he is not happy with the results. George has reached out to you to help him better understand why the process cost accounting is not working. He gives you the following information for July: George states that the company buys wholesale lots of diamonds, but they vary in weight. His diamond supplier charges strictly on weight, with heavier diamonds costing more. George uses stones anywhere from .951.05ct in weight. It is not possible for him to order stones in a tighter weight range than this. Gold is used commensurate with the size of the ring, larger rings needing more gold. George fills orders based on requested size. He is disappointed that his costing system does not appear to help him run a better controlled business. He has contracted you, as a professional managerial accountant, to help him run his business better. Required: 1. For each item listed determine if it is fixed or variable. Remember: fixed means it does not change over the relevant range. 2. Calculate the contribution margin and monthly profit/loss based on projected and actual numbers. Show all calculations in full detail with every line, revenue and expense labelled. 3. Based on George's projections what is the break-even level of rings sold. Show all calculations. 4. What is the difference between actual July profit and why is there a difference between the two? Give a minimum of 3 reasons. Explain in detail 300-400 words. 5. What is the difference between financial and managerial accounting? Is a financial auditor the person George should ask for advice on running this company? Explain in detail 200-300 words. 6. Would you recommend George to change his cost accounting system? Why? What other business changes would you recommend to George? Explain in detail. 400-500 words. This must be in a formal memo format