a)    Complete the table below by classifying thecost items. You need to repeat an amount if it belongs to more thanone category. You must provide a total for each column.

b)    Coffee-Culture Ltd manufactures baristaquality coffee machines. The unit selling price is $900 and thevariable cost per unit is $630. The monthly fixed cost for August2020 is $27,000. Answer the questions below in the spaces provided.(Show the formula and workings for each)

Required: Answer the following questions in thespaces provided:

a)    Complete the following table by classifyingthe cost items. You need to repeat an amount if it belongs to morethan one category. You must provide a total for each column.

Cost Items	Amount	Prime Costs	Conversion Costs	Product Costs	Period Costs
Raw materials	86,800
Factory supervisor’s salary	147,000
Factory workers’ wages	350,000
Depreciation on office building	7,280
Insurance on factory building	78,400
Advertising expenses	168,000
Totals

b)    Coffee-Culture Ltd manufactures baristaquality coffee machines. The unit selling price is $900 and thevariable cost per unit is $630. The monthly fixed cost for August2020 is $27,000. (Show the formula and workings foreach)

1. Calculate the contribution margin per unit.

2. Calculate the contribution margin as a ratio.

3. Calculate the break-even point in units. Calculate the break-even point in sales dollars.

4. Assume that the company sold 120 units oftelevisions in January 2019. Calculate the margin of safety indollars.

  

5. If the target profit for February 2019 is$15,000,calculate the required sales in dollars for February 2019.