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I need to get all problems correct .

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Problem 1 Thomas plans to set up a business that builds custom house for high net-worth customers in Upstate NY on January 1st, 2018. He would borrow $1,500,000 from a bank to invest in the business as star-up capital. As a CEO, he will get a monthly salary of $10,000/month. Cost Classification (Assignment #1) Here is the list of some related items or products that he would need to start the business: - Lumber - Roof - Concrete - Insulation - Ducting - Paint - Corporate office building He needs to hire you as an accountant to help his financial and accounting work, and hires one supervisor who is in charge of the supervision of building custom houses. His business' cost drivers are provided in Table 1. Required: Thomas needs your help in classifying the various costs. In order to manage these costs, he wants them identified using the information below. He asked that you use Table 2 for your answers. a) Behavior: fixed or variable cost b) Traceability: direct or indirect c) Financial reporting: product or period d) If product cost, identify which items are direct materials, direct labor or manufacturing overhead. Costing Systems (Assignment #2) Thomas discussed the business plan with you. He was told that there are three different types of costing systems that exist in organizations - job order, process costing and activity based costing. Required: Which type of costing system is his business most likely to use? Discuss? Table 1: Items Corporate office building Equipment used to build various custom house Lumber Roof Concrete Insulation Ducting Paint Utilities for corporate office (include gas, electric and water) Mobile phone (business) Accountant salary Supervisor salary Thomas' salary Salary of home assembly workers Estimated MOH Cost $45,000 (depreciated over 15 years on a straight line basis- no salvage value) $30,000 (depreciated over 1o years on a straight line basis- no salvage value) $30 per square foot $9 per square foot $3.25 per square foot $1.50 per square foot $55 per linear foot $150 per square foot $300 per month $400 per month $3,000 per month $5,000 per month $10,000 per month $10 per hour 37,000 per month Problem 2: Thomas' family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information: Premium Caviar Goose Foie Gras Units Totals 4,000 12,000 16,000 $100,000 $180,000 $280,000 Variable costs 56,000 105,000 161,000 Fixed costs 20,000 40,000 60,000 $ 24,000 $ 35,000 $ 59,000 Selling price per unit $25.00 $15.00 Contribution margin per unit $11.00 $6.25 $6.00 $2.92 Revenue Profit Profit margin per unit When Thomas took accounting courses at college, he knows how to do costvolume-profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following: a. What is the business' weighted average contribution margin per unit? (show your computation) b. Calculate the business' break-even point in units assuming the current sales mix. (show your computation) c. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation) d. What is the business' weighted average contribution margin ratio? (show your computation) e. What level of sales (in dollars) will be needed to earn a profit of $64,950 assuming the current sales mix? (show your computation) f. What will be the sales (in dollars) of Premium Caviar and Goose Foie Gras boxes for the business' total sales calculated in Part e? (show your computation) Problem 3: After a few years of successful business, Thomas saw the need to diversify his business to take advantage of the growth potential of new markets. Doing so also reduces the business risk. He set up a new company that sells 3 models of tables: Russian style, Italian style, and Mexican style. His targeted market was in NYC where there is huge demand for those products. Operating results for October are below: Russian style Italian style 4,000 4,500 3,500 1,2000 $36,000 $22,500 $35,000 $93,500 Variable departmental costs 14,000 13,500 17,500 45,000 Avoidable fixed costs 6,000 4,000 5,000 15,000 Unavoidable fixed costs 8,000 9,000 7,000 24,000 $ 8,000 ($ 4,000) $ 5,500 $ 9,500 Units sold Revenue Net income Mexican style Total a. If Italian style is discontinued, management estimates that sales of Russian style will increase by 20%. In good form, prepare an incremental analysis to determine if Italian style should be discontinued. b. What qualitative factors should Thomas consider relating question a. ? c. Should Italian style be discontinued based solely on quantitative aspects? Briefly justify your response. d. Without creating new income statements, and using your results from your analysis in part A, determine the amount of the company's new net income if Italian style is discontinued. Show your calculations