a. Compute: 1. Direct materials. 2. Direct labor. 3. Fixed Manufacturing overhead. 4. Variable manufacturing overhead. 5. Total manufacturing costs. 6. Prime cost. 7. Conversion cost. 8. Fixed period cost. 9. Variable period cost. b. Calculate the break-even point in units and verify the BEP. c. How much would they have to sell to get a $100,000 profit? d. What is the margin of safety in percentage of sales? What does it mean? e. If the sales increase by 5%, how much will the income increase in dollars? f. The company is considering using a different material that costs 10% more but will allow them to reduce the manufacturing fixed costs by 0.5%. Should they change? g. If they accept the changes in f, how many units do they have to sell to break even? Write the report addressed to the production manager indicating if the company should change the material or not. "Complete wellness" provides services in New York. The founder, Diana, is passionate about helping others maintain their healthiest life and preventing disease. She sells supplements and provides nutritional as well as training counselling. The service is customized to the needs of the clients based on their individual goals. The overhead for the following year, which includes the rental of the store, utilities, and a secretary, was estimated at $200,000. Diana estimates that they will provide 10,000 hours of counselling during the following year. She pays counselors and trainers $20 per hour, and allocates the costs based on the number of hours of consulting of each client. The following is the information about the costs of service of three clients. In his book "Capitalism and Freedom", economist Milton Friedman wrote on page 133: "there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profit so long as it .... engages in open and free competition, without deception or fraud." Ed Freeman in 1984 introduced the concept that business must not operate solely for the profits to be earned by shareholders but in the best interests of a broad range of stakeholders including customers, employees, suppliers etc. Discuss your position in this argument. Locate the website of any company that publishes corporate social responsibility reports (may also be referred to as a sustainability report). Describe three nonfinancial performance measures included in the report. Why do you think the company publishes this report