Question 4 [25 marks, 25%] The Tableware Ltd plans to sell 5,000 saucepans at $75 each in the coming year. Product costs include: Direct materials per saucepan $30 Direct labour per saucepan $8 Variable factory overhead per saucepan $4 Total fixed factory overhead $20,000 Variable selling expense is a commission of $3 per saucepan; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. [2 marks] 2. Prepare a contribution margin income statement for the Tableware Ltd for the coming year [7 marks] 3. Calculate the break-even number of saucepans [3 marks] 4. Calculate the contribution margin ratio. [3 marks] 5. General question (not related to calculations in sub-questions 1-4): Briefly explain what a contribution margin of 20% would mean [5 marks] 6. General question (not related to calculations in sub-questions 1-4): Briefly explain what a gross margin of 20% would mean [5 marks] END OF PAPER