Question 7 The following cost data were obtained from Cotton On Company which sells T-shirts: Production of T-shirts 80,000 Large, 100,000 Medium 50,000 Small Material Costs: $1.00 per shirt Variable Production costs: $0.80 per shirt Other variable overheads: $1.20 per shirt Fixed selling costs: $150,000 per month Fixed Administration costs: $200,000 per month Calculate the following: (i) Total variable costs for each production (9 marks) Total fixed costs for the month (1 mark) (b) Miss Carrie is the marketing manager of Curry Puff Company which sells 3 types of Curry Puffs. They are: Potato, Sardine and Tuna curry puff. Miss Carrie is considering to stop selling the Tuna Curry Puff as it is not making profit. The present situation of revenue and costs per curry puff is as follows: Potato Sardine Tuna s $ $ Sales per curry puff 1.50 1.60 1.50 Ingredients per curry puff 0.50 0.55 0.60 Direct labour per curry puff 0.40 0.40 0.40 Variable overheads per puff 0.30 0.25 0.40 Fixed costs per curry puff 0.10 0.10 0.10 Miss Carrie approaches you for advice as to whether she should stop selling the Tuna curry puff. Please advise her and support your advice with financial data. (10 marks)