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Question 1 (26 marks) Toyko is a company that specialize in producing toys for toddlers. The company is currently planning to produce a doll that
Question 1 (26 marks) Toyko is a company that specialize in producing toys for toddlers. The company is currently planning to produce a doll that can perform some of the tasks that a human can, thanks to the artificial intelligence (AI) software developed by a company called Software X. The management accountant of Toyko Company has extracted the following information from the books of the company that relates to the manufacturing of the doll. Additional information 1. 0.6 kilos of miscellaneous materials are needed to produce one doll. The supplier sells these materials at a cost of N$40 per kilo and 4% of all the material purchased is considered a normal loss. 2. Toyko has entered into an agreement with Software X that they will pay a royalty of 15% of the selling price of the doll. 3. Toyko has performed a market research and has identified that this doll will not sell for more than N\$250. 4. Toyko requires a profit margin of 25%
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