Oerstion ? Marks) Makiu Inc. manufactures a variety of battery powered hand tools. The company has assembled the following data pertaining to its two most popular products: Oerstien 3 (16 marks) Inc, manufactures and sell bicycle safety helmets. Price and cost data for the product follows: Sam 40 30.50 DM Dunch Merhad 5190000 Telanco HO * The manufacturing overhead is applied at a rate of $80 per machine hour used in production. Twenty five percent of the MOH is variable in nature and the remaining seventy five percent is fixed. Makita only has 500,000 hours of machine time available for making these two tools this year. When Makita cannot satisfy the demand for its products, the company will buy units from an outside supplier Required: How should Makita use this year's limited supply of machine hours? How many of cach product should they make themselves and how many units should be purchased from the outside supplier? Required: a. Calculate Giro's margin of safety in sales dollars. b. How many units does the company have to sell in order to generate a net income figure of S600.000? The company has a 35% tax rate c. Giro is looking at the possibility of renting a machine at an annual cost of $90,000. This machine would allow Giro to reduce its direct labour costs by 15% and its variable manufacturing overhead costs by 5%. Advise Giro as to what the company should do. AD 355 GLG Oerstion ? Marks) Makiu Inc. manufactures a variety of battery powered hand tools. The company has assembled the following data pertaining to its two most popular products: Oerstien 3 (16 marks) Inc, manufactures and sell bicycle safety helmets. Price and cost data for the product follows: Sam 40 30.50 DM Dunch Merhad 5190000 Telanco HO * The manufacturing overhead is applied at a rate of $80 per machine hour used in production. Twenty five percent of the MOH is variable in nature and the remaining seventy five percent is fixed. Makita only has 500,000 hours of machine time available for making these two tools this year. When Makita cannot satisfy the demand for its products, the company will buy units from an outside supplier Required: How should Makita use this year's limited supply of machine hours? How many of cach product should they make themselves and how many units should be purchased from the outside supplier? Required: a. Calculate Giro's margin of safety in sales dollars. b. How many units does the company have to sell in order to generate a net income figure of S600.000? The company has a 35% tax rate c. Giro is looking at the possibility of renting a machine at an annual cost of $90,000. This machine would allow Giro to reduce its direct labour costs by 15% and its variable manufacturing overhead costs by 5%. Advise Giro as to what the company should do. AD 355 GLG