A CEO developed a plan to grow a company with sales dollars per unit of $600. The contribution margin per unit was $300 and break-even units were 100,000 units in the year 1 plan. Fixed costs were expected to be $30,000,000. The CEO wanted a target profit of $15,000,000. Actual results at the end of the year were negatively impacted by higher variable costs per unit and higher fixed costs but sales dollars per unit held at $600. The CFO could not explain why costs went up and regular reports to the CEO were not completed during the year. There was a consensus the initial plan was too tough and reporting should be reviewed.

Given the management accountants role in advising senior management, what comments would you provide under the captions below considering the case facts above?