Part 2 - Answer the following questions Question 2 (30 marks) A- Nour Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product which it sells at $86.35 per unit units Production volume Direct materials Direct labor Manufacturing overhead (Mixed) Fixed selling and administrative expenses S $ $ $ 12,500 units 356,875 128,125 502,350 192,025 $ $ $ $ 14,000 399,700 143,500 513,675 192,025 Required: Using high-low method and CVP analysis 1. Compute Nour's breakeven point in units and dollars. Prove your answer 2. Compute how many units the company needs to sell to earn a profit of $ 600,000. 3. Compute the selling price per unit of the company if BEP (units) is 40,000 units and the variable cost per unit and total fixed cost does not change. 4. Explain the various methods used to estimate the variable component and the fixed component of the mixed cost (Excluding Scattergraph method) and state which method is the most accurate? Why? (20 Marks) B- The AAA Company, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount $1,176,000 $ 420 $ 46 $ 15 $ 145,000 $ 105,000 $ 65,000 $ 115,000 $ 320,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? 4. Which income statement format would be more useful in estimating how net operating income will change in responses to changes in unit sales? Why? (10 Marks)