E12-23. Time-Adjusted Cost-Volume-Profit Analysis Honeydukes Treat Shop is considering the desirability of producing a new chocolate candy callecd Pleasure Bombs. Before purchasing the new equipment required to manufacture Pleasure Bombs, Neville Long, the shop's proprietor performed the following analysis: $2.18 Variable manufacturing and selling costs.... . . . . . . . . .. . . . . . . . .. . . . . Annual fixed costs Depreciation (straight-line for 4 years) Other (all cash) $21,750 Total $67,500 Annual break-even sales volume $67,500 $0.45 = 150,000 units Because the expected annual sales volume is 160,000 units, Long decided to undertake the produc tion of Pleasure Bombs. This required an immediate investment of S87,000 in equipment that has a life of four years and no salvage value. After four years, the production of Pleasure Bombs will be discontinued. Required a. Evaluate the analysis performed by Long b. If Honeydukes Treat Shop has a time value of money of 8 percent, should it make the investment with projected annual sales of 160,000 units? c. Considering the time value of money, what annual unit sales volume is required to break even