just need part a

Parker Ltd - continued: Trading (production and sales): You should assume that today is Monday 27th November 2023. Sales: The company has the following sales orders to be delivered during December 2020. Production: The production schedule for December 2023 (product quantities and production resources requirement) is shown below. Note: At 1st December 2023 there will be no opening inventory of finished goods. Note: At 1st December 2023 there will be no opening inventory of finished goods. Resources requirement for production: Direct costs (variable costs): Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at 25,900 per month. This value has been allocated and apportioned to the 3 production departments as follows: Bases for absorption: - Machining department = Machine hours - Painting department = Direct labour hours - Assembly department = Direct labour hours Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Task 4: a. Re - calculate the gross profit (and gross profit margin) if product ' B ' is removed from the production and sales schedule. Note: It has been established that, if product ' B ' was removed from the catalogue, specific fixed cost savings of 9,000 would be made. 4 Marks b. Draft a memo to David Jones in reply to his comment (with clear explanatory supporting reasons to a non-accountant). 7 Marks Parker Ltd Task: 4 a. Recalculate gross profit (and margin) if product ' B ' is removed (deleted) from the product range - (To max 4 marks) Parker Ltd - continued: Trading (production and sales): You should assume that today is Monday 27th November 2023. Sales: The company has the following sales orders to be delivered during December 2020. Production: The production schedule for December 2023 (product quantities and production resources requirement) is shown below. Note: At 1st December 2023 there will be no opening inventory of finished goods. Note: At 1st December 2023 there will be no opening inventory of finished goods. Resources requirement for production: Direct costs (variable costs): Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at 25,900 per month. This value has been allocated and apportioned to the 3 production departments as follows: Bases for absorption: - Machining department = Machine hours - Painting department = Direct labour hours - Assembly department = Direct labour hours Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Task 4: a. Re - calculate the gross profit (and gross profit margin) if product ' B ' is removed from the production and sales schedule. Note: It has been established that, if product ' B ' was removed from the catalogue, specific fixed cost savings of 9,000 would be made. 4 Marks b. Draft a memo to David Jones in reply to his comment (with clear explanatory supporting reasons to a non-accountant). 7 Marks Parker Ltd Task: 4 a. Recalculate gross profit (and margin) if product ' B ' is removed (deleted) from the product range - (To max 4 marks)