Question 3: Mill Stream produces a single product, the Mill. Information relating for April 2019 is as follows: Production (units) 15,000 10,000 Sales (units) Sales price per unit E20 Units costs (E) Direct materials Direct labour Variable production overhead 2 2 Variable non-production overheads per sales unit Fixed costs for the month E Production costs 15,000 Non-production costs 35,000 There was no opening inventory at the start of the month. Required: a) Calculate the total cost per Mill using absorption costing, using units produced as basis for apportioning (5 marks) b) Calculate the marginal cost of producing each Mill (5 marks) c) Calculate the expected contribution per Mill (5 marks) d) Prepare a marginal costing statement to show clearly the total contribution and the total profit/loss of the month (5 marks) e) Based on the marginal statement what could be the profit or loss be if the whole units of Mills produced were sold