Problem 5 (12 Marks) Jamie's Hot Dog Stands sells hot dogs at ballparks across Canada for $1.55. Variable costs are $1.15 per unit with fixed production costs of $80,000 per month at a level of 320,000 units. Fixed administrative costs total $25,000. Sales average 320,000 units per month, with planned production of 320,000 hot dogs. Required: a. What are break-even unit sales under variable costing? b. What are break-even unit sales under absorption costing if she sells everything she prepares? What are break-even unit sales under absorption costing if average sales are 399,000 and planned production is changed to 400,000? c. Problem 6 (14 Marks) 28) Tessmer Manufacturing Company produces inventory in a highly automated assembly plant in Windsor, Ontario. The automated system is in its first year of operation and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations, the following data were collected: Machine-hours Kilowatt-hours Total Overhead Costs January 3,800 4,520,000 $138,000 February 3,650 4,340,000 136,800 March 3,900 4,500,000 139,200 April 3,300 4,290,000 136,800 May 3,250 4,200,000 126,000 June 3,100 4,120,000 120,000 a. Required: Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. b. Use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver. c. For July, the company ran the machines for 3,150 hours and used 4,180,000 kilowatt-hours of power. The overhead costs totaled $114,000. Which cost driver was the best predictor for July