Major Metals Ltd. manufactures and sells two types of metal tanks, small and large. Budgeted sales for 2021 are as follows: # tanks sold Selling price per tank Variable expenses per tank Small Large 1,000 800 $500 $30 $700 $70 Major has four departments: Material handling, Cutting, Assembly, and Inspection. Fixed expense information is as follows: Total Hours Total Time Available Activity Amount % Mat'l handling $50,000 50% 2,000 Cutting 140,000 25% 4,000 Assembly 400,000 15% 10,000 Inspection 90,000 10% 2,000 Total 100% Based on this information, the budgeted income from operations for 2021 is as follows: Small Large Total Sales $500,000 $560,000 $1,060,000 Variable expense (30,000) (56,000) (86,000) Contribution margin 470,000 504,000 974,000 Fixed expenses Mat'l handling (20,000) (30,000) (50,000) Cutting (42,000) (98,000) (140,000) Assembly (160,000) (240,000) (400,000) Inspection (45,000) (45,000) (90,000) (267,000) (413,000) (680,000) Income from operations $203,000 $91,000 $294,000 Net profit/unit $203.00 $113.75 The company wants to allocate fixed expenses based on time-driven activity based costing. An analysis of activities and time per activity is as follows: Unit time # activities in hours Small Large Mat'l handling 0.6 1 2 Cutting 0.5 3 6 Assembly 0.8 7 Inspection 0.6 Required: a. (9 marks) Prepare the income from operations for Major Metals Ltd. using TDABC.