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 used in computer assembling $145 300 Rates and taxes on factory building 5500 Sales commissions paid to sell personal computers 52 000 Wages of assembly line workers 65 000 Salaries of factory supervisor 8000 Depreciation on factory equipment 12 000 Depreciation on delivery trucks 3000 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) Richards Ltd manufactures 32L convection microwave ovens. Unit data for convection microwave oven model are as follows: Convection Selling price $2101 Variable costs and expenses Direct materials Direct labour Manufacturing overhead 30 Selling and administrative 26 Total variable costs and expenses $126 45 25 The fixed costs are: manufacturing overhead $20 300, and selling and administrative expenses $9100. Required: (a) Calculate the contribution margin ratio for the convection model. (3 Marks) (b) Calculate the break-even point in dollars for the convection model. (3 Marks) (c) Calculate the margin of safety ratio assuming that the company expects to sell 520 microwave ovens from the convection model. (2 Marks) (1) Discuss how managers of Richards Ltd use this margin of safety ratio information to manage the profitability of the convection model? (4 Marks) (Total 20 Marks) 7 i BI F of c? Part A (a) (b) (c) (d) Part B (a) (b) (c)(I) (c)(ii)