QUESTIONS T&M Briefcases has two alternatives for manufacturing their briefcases. The first alternative is to rent a machine to make the briefcases. With this alternative the total fixed costs of operating the workshop for a month would be $12,000. The material costs for each briefcase would be 516 and there would be employee labour of half an hour. Employees are paid $28lan hour. The second alternative is to use a manual production process. In this case the fixed costs of operating the workshop for a month would be $8,050. Each briefcase still requires materials which cost $16 but it would take 1 hour of labour to make each briefcase. Employees are still be paid $28 an hour. The briefcases are sold for $90 each and expected sales are 700 per month. u g (a) For each option what is the break-even point in units (briefcases)? It B (4 marks) (b) Prepare a contribution margin income statement for each option. Which option would provide the highest monthly profit? (8 marks)