(d) What if Analysis for Davidson Company Davidson Company mass produces several common computer chips. Type A sells for $ 1.20 per unit. Variable cost is $ 0.95 per unit and the fixed costs are $ 32,000 per month. Davidson currently sells 140,000 units per month. Under intense pressure to boost profits, the production manager has a plan which will reduce fixed costs by 10% Required Horngren (2012) argues that customers want companies to use the value chain and supply chain to deliver every improving levels of performance. (1). Explain the meaning of supply chain management and value chain analysis and Discuss how value chain and supply chain analysis help companies in controlling costs. (20 marks) (2) Prepare an income statement for Davidson Company, a merchandiser, for the year ended December 31, 2020 based on the information given above in (b). Show cost of goods sold calculations clearly (10 marks) (3) Using information given above in (c), compute the BEP Total Units for Davidson Company (10 marks) (4). Using the information given above in (d), perform the following calculations (1) How will this affect the breakeven point in terms of units per month? (i) How will this affect net operating income? (ii) How much is the margin of safety expressed in units per month? (iv) Because of volatility in the precious metals market, the variable cost per unit has just gone up by S 0.05, but the company does not believe it can pass the extra cost on to the customer. To offset higher variable costs, the production manager has developed a plan which will reduce fixed costs by 20%. How will these combined changes affect net operating income? (20 marks)