Huzaifas Telecom Ltd, has organized a new division to manufacture and sell mobile telephones. Monthly costs associated with the mobile phones and with the plant in which the mobile phones are manufactured are shown below:Manufacturing costs: DM per unit $48, Variable moh per unit $2, Total fixed moh $3,60,000. Selling and admin expenses: Variable selling and admin costs 12% of sale, total fixed selling and admin costs $4,70,000.Huzaifas Telecom regards all of its workers as fulltime employees and the company has a longstanding no layoff policy. Furthermore, production is highly automated. Accordingly, the company has included in its fixed manufacturing overheads all of its labor costs. The mobile phone sell for $150 each. During, April, the first month of the operation, the company produced 12,000 mobiles and sold 10,000 units in total. UNDER VARIABLE COSTING METHOD, THE COMPANY MADE * 2 points $50,000 LOSS; NONE OF THEM $10,000 LOSS; $50,000 PROFIT