Question 02 i. ii. Explain the following cost terms with an example a. Opportunity Costs b. Sunk Costs c. Relevant Costs (02 marks each X 3 = 06 marks) Nimal earned his Sales salaries in March Rs. 130,000 when 8,000 units are sold. Earned Rs. 170,000 in April when 12,000 units are sold. iii. Required: Calculate fixed portion of Nimal's sales salaries using the high-low method (04 marks) SJP Company produces two types of gearboxes, X and Y. Following information is related to X and Y. Product Unit contribution Rs. Monthly demand gearbox X 150 2 000 Y 200 3 000 Both gearboxes must be stamped by a special machine. The company owns a machine that provide 15,000 hours of machine time per month. Gearbox X requires 2 hour of machine time, while gearbox Y requires 4 hour of machine time. There are no other constraints. Required: a. Contribution margin per hour of machine time per each gearbox b. Optimal production plan c. Total contribution for the optimal mix d. Total shortage of machine hours (15 marks)