PLEASE ANSWER

Part A (10 Marks) Ryde Metal Company manufactures recyclable soft drinks cans and incurs the following costs as part of its operations. Cost Items Amount $ Salary of factory supervisor Factory utility cost 9,400 Aluminium used 67,500 18,000 11,800 Commissions paid to sales personnel Wages for factory labour Insurance on factory equipment 35,600 3,500 2,700 6,300 Depreciation on factory equipment Maintenance cost of delivery vehicles Advertising cost to promote the product Rental for factory space 10,000 13,000 Required You are required to calculate the: a) Prime cost (2 Marks) 2 b) Conversion cost (2 Marks) 2 c) Period cost (3 Marks) ) d) Product cost (3 Marks) Show all calculations. Part B (10 Marks) Yummy n' Easy is a famous fresh ready-made meals business that operates in many suburbs in New South Wales. The selling price of a ready-made meal is $10. It is estimated that the company will incur a variable cost of $168,000 to make and deliver 24,000 meals (estimated production and sales). The company's estimated fixed cost is $51,000. Required You are required to calculate the following. Show all calculations. a) What is Yummy n' Easy's contribution margin ratio? (2 Marks) b) Calculate Yummy n' Easy's break-even point in units (meals). (2 marks) c) Calculate Yummy n' Easy's break-even point in sales dollars. (1 Mark) d) (i) What is Yummy n' Easy's margin of safety ratio? (Round off the answer to the nearest 2 decimal places). (1 Mark) (ii) How can managers of Yummy n' Easy use this margin of safety ratio information to manage the profitability of the business? (2 Marks) e) How many meals must the company sell to earn a target profit of $90000? (2 Marks)