. MASAN - a company manufacture, selling PORK to be used in the hi-class of the executives. One Bag of Premium Pork is sold for $400. The selected data for year 2020 is given below:

Manufacturing expenses:

Direct materials per unit: $100

Direct labour per unit: $60

Variable manufacturing overhead per unit: $20

Fixed manufacturing overhead per year: $90,000

Non-manufacturing expenses:

Variable selling and administrative expense per unit: $40

Fixed selling expense per year: $40,000

. Fixed administrative expense per year: $20,000

Inventory information:

Units in opening inventory: 0 units

Units produced during 2020: 12,000 units

Units sold during 2020: 10,000 units

. Units in closing inventory is 2000 units, but only 50% of them are stored in the company warehouse in Hoc Mon district, the rest 50% of them are stored at a rent warehouse in Thu Duc City. The rent warehouse is free for the first three years.

Required:

1. Compute manufacturing cost of one Bag under variable costing (P3).

2. Prepare income statement in either Absorption or Variable Costing approach (P3)

3. Compute break-even point both in units and in dollars. What should the company do to lower the break-even points? Give at least two possible actions (P3).

4. MASAN needs to send this report to the Bank to ask for borrowing $1,000,000 in 5 years with 10% interest per year. What are the appropriate financial reports that you wish to give to the bank? Why? Explain the management accounting techniques you wish to use in that financial report (M2).

5. Please compare, comment and advice the company by using the differences in using variable costing vs absorption costing (D2).