Part 3. Business Planning and Budgeting (30% of assignment marks) The firm has a UK production facility comprising two production lines with an annual capacity of 5,000 units for line 1 and 15,000 units for line 2 where they plan to manufacture loT Routers that provide remote access to devices via a smart Internet gateway. Total annual overheads of 4,MN0,000 (where MN are the last two non- zero digits of your student id) which are allocated by volume: a) Create a Contribution Statement using the template shown below with a column for each production line and total production critically review (against course materials and wider reading) the profitability of the overall production facility including the Return on Sales (ROS) for both scenarios: The firm is looking to produce a high value router priced at 600 on line 1 and a mid-range router at 300 on line 2 where total variable costs for each of the products are one-third of Sales revenues. The firm is concerned in case the cost of parts/materials (from suppliers) increase which will reduce the Product Contribution ratio for the mid-range product to half of Sales revenues revise the Contribution Statement. b) Examine the two scenarios (ideally visually by CVP charts): discuss the changes to the profitability and evaluate the business situation critically. c) There is space at the UK production facility to also provide a warehouse to support online orders so that international customers from overseas markets may purchase loT Routers discuss this eCommerce opportunity including product cost effectiveness and competitiveness implications. Contribution Statement Template Sales units: Sales revenues Less: Parts/Materials Machining Cost Direct Labour TOTAL Variable costs Product Contribution Less: Fixed Costs Profit/Loss 5,000 Line 1 15,000 20,000 Line 2 Total nnnn nnnn (nnnn) (nnnn) (nnnn) (nnnn) (nnnn) (nnnn) (0) 0000 nnnn nnnn nnnn (nano) nnnn