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3. Anja Corporation specializes in the manufacture of high end telephone cases. For the financial year 2012, Anja Corp. has a shortfall in production which
3. Anja Corporation specializes in the manufacture of high end telephone cases. For the financial year 2012, Anja Corp. has a shortfall in production which resulted in a financial loss for the period. Senior management's review of the current controls revealed that improper planning caused the firm to miss its objectives. New objectives are now being set for 2013. (25 Points) a. The production manager has been tasked with putting together a comprehensive Break-even analysis and must present his findings in both numeric and graphical terms. b. The following details have been provided to him by the cost accounting team i. Fixed cost is $720,000. ii. Variable costs are comprised of: 1. Materials of $20.00 per unit 2. Labor costs of $25.00 per unit 3. Sales Price per unit of $85.00 c. 1. Calculate the Break-even units. d. 2. What is the Total Break-even revenue e. 3. What is the Total Break-even cost. f. 4. If Sales are equal to 25,000 units, what is the $$ profit above the break-even point. g. 5. If Sales are equal to 15,000 units, what is the $$ loss below the break- even point. h. 6. Graphically show your results in 1-5 above i. 7. How much would the Break-even point change if Anja Corporation offers a 10% discount on its sale price. EXTRA CREDIT QUESTION. What is the expected value (EV) on the following scenarios given these probabilities. Which project would be the project of choice given the calculated (EV). Focus
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