This is the information from #8

Using the information from #8. Assuming there are no fixed costs of manufacturing and no other variable costs incurred by the company. What is the Contribution Margin using the proposed activity based method? (3 Points) Enter your answer Using the information from #8. Assuming there are no fixed costs of manufacturing and no other variable costs incurred by the company. What is the Gross Profit using the proposed activity based method? ) (3 Points) Enter your answer 12 Using the information from question 8. WITHOUT Changing Sales price, If the company introduced a new testing method that reduced overall testing overhead cost from $129,000 to $90,000, what would the Gross Profit be using the Activity based method? (12 Points) Enter your answer Think inc. Overhead Allocation Proposed Allocation Method Overhead cost pool/activities Material handling Machining Testing Total Overhead costs Think, Inc. Has a really smart new accountant who wants to change the companies manufacturing overhead allocation from its current allocation to one based on the activity of the factory. the accountant wants you to help illustrate to the board of directors of Think, Inc. how this will change their profitability. The company currently prices their products at 45% more than their unit cost. The Accountant has estimated the unit Sales at the sales price of each unit. Answer questions 8-12 based on the following information. S $ Is OH Costs 120,000 180,000 129,000 429,000 Costs drivers # of parts # of MH # of TH 1 activity level 40,000 15,000 3 ,000 S $ S Allocation Rate 3.00 12.00 43.00 per part per MH per TH | $ Cost Drivers Used by product Type # of parts # of MH Type A 20,000 4,000 800 Type B 12,000 5,000 700 Type C 8,000 6,000 1,500 # of TH Current Cost allocation Type A | Type B Type C TOTAL Total Cost = 5 Total Activity 19500 PFOR 22 Per hour 429,000.0 $ 10,000 L 25 20 Is Is ,000 35 30 Is s 1 1,000 45 40 s s Is IS 105 90 Type A 10,000 Product costs as per TC Units DLH/unit Direct material Direct Labor Manufacturing overhead (MOH) Unit cost 1.0 Product costs as per ABC Units Direct material Direct Labor FOH Material handling Machining Testing Total FOH Total FOH/unit Unit cost Type B 5,000 1.5 35.00 30.00 33.00 98.00 Type C 1,000 2.0 45.00 40.00 44.00 129.00 $ 25.00 $ 20.00 $ 22.00 $ 67.00 $ $ $ $ $ $ S $ is 60,000.00 48,000.00 34,400.00 142,400.00 14.24 5 9.24 $ $ $ $ $ $ S $ S $ $ $ $ 36,000.00 $ 60,000.00 $ 30,100.00 S 126,100.00 $ 25.22 $ 90.220 120,000.00 180,000.00 129,000.00 429,000.00 24,000.00 72,000.00 64,500.00 160,500.00 160.50 245.50 TRUE 1 Sales Figures Sales Price Per unit Est. Sales at Price per unit $ $ $ $ 97.15 7,000 $ Sales Figures Sales Price Per unit Sales in units 142.10 4,000 187.05 1,000 85.90 9,000 130.82 5,000 355.98 800 COGS 533,160 451,100 196,400 1,180,660