Paragraph Styles You are given the following data for April for a soda bottling plant located in Bahrain: Actual Bottles filled Direct materials used in production Actual direct material cost Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 300,000 6,200,000 oz. (ounce) 2.108.000 BD 22,000 hours 663.740 BD 15 oz. Standards Purchased price of direct materials 0.33 BD/oz. Bottle size Wage rate 29.15 BD/hour Bottles per minute 0.50 Required: 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month April 2. Can you provide explanations for the variances that you have calculated? Answer: Al Kaber Corporation produces two types of products. One is smaller and is primarily used in car decoration. The other is a larger model. The smaller product (Product A) sells for BD200 and has variable costs of BD120. The larger product (Product B) sells for BD600 and has variable costs of BD420. Al Kaber Corporation sells four smaller models for every one larger model sold. Fixed costs equal BD1,250,000. Required: 1. What is the breakeven point in units sales and dollars for each type of product at the current sales mix? 2. Al Kaber corporation considering buying new production equipment. The new equipment will increase fixed cost by BD202,000 per year and will decrease the variable cost of the small and large products by BD15 and BD45, respectively. Assuming the same sales mix, how many of each type of product does Al Kaber Corp. need to sell to break even