. E H M N 0 P 1 2 3 Analyse the following the options and preforma Break-wenanalysis for eaching the contribution margin method for Kurt's T Shirt Company 4 5 8 7 3 10 Option 1 Option to import the finished goods internationally for sale domestically in a retail outlet, this option requires a very high minimum purchase order (250,000 units however has the advantage of our per unit cost and lower feed costs. This plan has the following costs and revenue associated Volume 250.000 Selling PricePerUnit: $11.99 Unit Variable: $3.50 Fixed Cost$255.000 Depreciation: $5.000 11 12 13 14 15 16 17 Option 2 This option requires the purchase of a textile machine that can produce fabrics with a higher thread count Urfinished goods reported internationally in Form of thread and then processed for final sale domestically will require an additional investment of $200,000 compared to option 1 but has the advantage of higher quality goods and as such will sell for a higher price. This pian has the following TR 19 costs and revenue associated 20 20 22 25 24 25 26 27 28 10 Volumen 180.000 Selling PricePerUnit:$25.00 Une Variable Cost: $21.00 Fared Costs:3455,000 Depreciation: $10,000 Option 3 The last option is to sell custom T-shirts that are made to order. This option requires the highest fixed costs because it requires a printing machine to print custom labels or designs for customers. Variable costs for this option are low compared to other options and has the advantage of charging a premium for the shirts being custom and made to order This plan has the following costs and revenue sted Volumen: 30,000 Selling Price $35.00 Unit Variable Cost: $is.co Fixed Costs:$ 1.200.000,00 Depreciation: 540.000 11 22 33 14 19 16 37 38 39 40 Which Option would you choose for the short term? What about for the long term? Why? You may put your wiwer below 41 02 23 44 45 46 4T 4 49 50 51 53 54 55 1 56 57 52 SEBS . 5 ... .. 1 Break-Even Analysis Using the Contribution Margin 2 3 Option 1 Option 2 Option 3 4 5 Volume (units) Price per unit 6 7 Sales revenue 0 0 0 8 Unit variable cost Contribution margin 9 0.00 0.00 0.00 10 11 Fixed costs 12 Cash fixed costs Depreciation 13 14 Total fixed costs 0 0 0 0 15 16 Profit/loss statement 17 Sales revenue 18 Variable costs Contribution OOO 19 ooo old o olo ololl 20 Fixed costs 0 21 Profit (loss) 0 22 23 Break-even point (in units) Regular break-even 24 25 #DIV/0! #DIV/0! #DIV/0! #DIV/0! % of sales Cash break-even % of sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 26 27 28 29 30 31 #DIV/01 #DIV/0! #DIV/0! 32 Profit objective to make ($) you need to sell (units) to make (5) you need to sell (units) to make (s) you need to sell (units) 33 #DIV/0! #DIV/0! #DIV/0! 34 35 #DIV/01 #DIV/0! #DIV/0! 36 37 Break-even point in revenue) 38 39 Regular break-even #DIV/0! #DIV/0! #DIV/0! 40 41 Cash break-even #DIV/0! #DIV/0! #DIV/0! 42 43 Profit objective 44 to make 0 0 0 45 you need to sell #DIV/0! #DIV/0! #DIV/0