Part A (8 Marks) Presented below are Bread Emporium Ltd's monthly costs and expenses data relating to its bakery products: Flour used in baking bread $165 3001 Rate fees on bakery building 6500 Advertising costs paid to promote gluten free bagels 32 000 Wages of bakers 75 000 Salaries of bakery manager and security guard 9000 Depreciation on bakery equipment 15 000 Depreciation on delivery vans 5000 Required: From the above information, calculate the total amount of: (a) Prime cost (2 Marks) (b) Manufacturing overhead (2 Marks) (c) Conversion cost (2 Marks) (d) Period cost (2 Marks) Part B (12 Marks) James Ltd manufactures 6.6kW solar panels. Unit data for 6.6kW solar panel model are as follows: Solar panel model Selling price $2100 Variable costs and expenses Direct materials 350 Direct labour 250 Manufacturing overhead 500 Selling and administrative 3701 Total variable costs and expenses $1470 The fixed costs are: manufacturing overhead $200 300, and selling and administrative expenses $90100. Required: (a) Calculate the contribution margin ratio for the solar panel model. (3 Marks) (b) Calculate the break-even point in dollars for the solar panel model. (3 Marks) (c) i) Calculate the margin of safety ratio assuming that the company expects to sell 520 solar panels from the 6.6kW model. (2 Marks) ii) Discuss how managers of James Ltd use this margin of safety ratio information to manage the profitability of the solar panel model? (4 Marks) (Total 20 Marks) 7 i FE iii III c? O Part A (a) (b) (c) (d) Part B (a) (b) (c)(0) (c)(ii)