2 years ago Ashley Harper Week 2 Discussion 353 Ethics, CVP analysis. produce molded plastic casing. MacM101, for many cell phones currently on the market. Summary data from its 2017 income statement are as follows: Revenues Variable costs Fred Co s ta come. . .. 1.000.000 10.000) Joshua Kirby, Megaphone's president, is very concerned about Megaphone Corporation's poor profitability. Hos Leroy Gibbs, production manager and on oc c e creare ways to reduce costs. Aller 2 weeks, Leroy returns with a proposal to reduce variable costs to 55% of revenues by reducing the costs Megaphone currently incurs for sale disposal of wasted s om concer t would capse me company to potential environmental liabilities. He tells Leroy, "We would need to estimate some of these potential environmental costs and include them in our analysis You Leroy replies. We are not violating any laws. There is some possibility that we may have to incur environmental costs in the future, but if we bring it up now, this proposal will not go through because our senior management always emer man meytum out to be. The market is very tough, and we are in danger of shutting down the company and costing all of us our jobs. The only reason our competitors are making money they are doing exactly what I am proposing." 1. Calculate Megaphone Corporation's breakeven revenues for 2017 2. Calculate Megaphone Corporation's breakeven revenues if variable costs are 55% of revenues. 5. Calculate Megaphone Corporations operating income for 2017 if variable costs had been 5% of revenues. 4. Given Leroy Gibbs's comments, what should Tony DiNunzo do? Prepare your response to this scenario by Wednesday Midnight and also comment on 2 peers or your instructor's responses by Sunday to eam full credit. Discussion Board posts are worth 10% of your total grade for the course Reply Quote Email Author 10:55 PM + OBI