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Part A (8 Marks) Presented below are Techno Ltd's monthly costs and expenses data relating to its personal computer product: Microchips and memory cards $145300

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Part A (8 Marks) Presented below are Techno Ltd's monthly costs and expenses data relating to its personal computer product: Microchips and memory cards $145300 used in computer assembling Rates and taxes on factory 5500 building Sales commissions paid to sell 52000 personal computers Wages of assembly line 65000 workers Salaries of factory supervisor 8000 Depreciation on factory 12000 equipment Depreciation on delivery trucks 3000 Required (Show all calculation) 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) Richards Ltd manufactures 32L convection microwave ovens. Unit data for convection microwave oven model are as follows: Convection Selling price $210 Variable costs and expenses Direct materials Direct labour 25 Manufacturing overhead 30 Selling and administrative 26 Total variable costs and $126 expenses st 51 The fixed costs are: manufacturing overhead $20300, and selling and administrative expenses $9100. Required (Show all calculation) (a) Calculate the contribution margin ratio for the convection model. (2 Marks) (b) Calculate the break-even point in dollars for the convection model. (2 Marks) (c) i) Calculate the margin of safety ratio assuming that the company expects to sell 520 microwave ovens (b) Calculate the break-even point in dollars for the convection model. (2 Marks) (c) i) Calculate the margin of safety ratio assuming that the company expects to sell 520 microwave ovens from the convection model. (2 Marks) ii) Discuss how managers of Richards Ltd use this margin of safety ratio information to manage the profitability of the convection model. (4 Marks) (d) Calculate the sales (in units) necessary to make a profit of $21000 on the convection model

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