Question 1.20 marta) In your own words define a cost object and give 3 examples Dovleac, Inc. produces three different paper products at its St. Blasio plant- Best. Better, and Good. Each product has its own dedicated production line at the plant. The company currently uses the following three-part classification for its manufacturing costs: direct material, direct manufacturing labour, and indirect manufacturing costs Total indirect manufacturing costs of the plant in May 2018 are $150 million ($50 million of which are fired). This totalamount is allocated to each product line on the basis of direct manufacturing Labour costs of each line. Summary data (in millions) for May 2018 EEST $84 RETTE $54 Direct Material Cost Direct Manufacturing Labour Costs Indirect Manufacturing Costs Production GOOD $62 8 130 kg 120 kg Compute the total manufacturing cost per kilogram for each product produced in May 2018. Compute the total variable manufacturing cost per kilogram for each product produced in May 2018 Suppose that in June 2018. production was 120 million kilograms of Best. 160 million kilograms of Better and 180 million kilograms of Good. Why might the May 2018 information on total manufacturing costs per kilogram be misleading when predicting total manufacturing costs in June 2018 Question 2 (20 marka) The Walk Rite Shoe Company operates a chain of shoe stores. The stores sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Walk Rite is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships Selling price S 30.00 Un variante cost per pair Cost of shoes Siates commissions Total variable Annual fixed 60.000 Salaries 700.000 Other fixed cost Total deste SMO DOO Required(Consider each question independently) 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. 133.000 units are sold, what will be the stores operating income oss? 3. sales commissions were discontinued for individual salespeople in favour of an $49.500 increase in fised salaries, what would be the annual breakeven point in (a) units sold and (b) Tevens? 4. Refer to the original data. If the store manager were paid $0.30 per un sold in addition to his current foed salary, what would be the annual breakeven point in (a) units sold and (b) 5. Refer to the original data. If the store manager were paid $0.30 per unit commission on each unit sold in excess of the breakeven point, what would be the stores operating income if 50.000 units were sold? (This $0.30 is in addition to both the commission paid to the sales staff and the store manager's foed salary