Energy Devices, Inc. Energy Devices, Inc. (EDI), purchased energy-saving devices in bulk, repackaged them, and sold them to hardware stores in various locales. Its products consisted of shower nozzles chat re- strict the flow of water, thermostats with timers, and storm windows. Management was preparing the budget for the upcoming fiscal year. Preliminary figures, by product, are shown below: Total 1.500 Number of items 200 500 Shower Nozzles Thermostats. Storm Windows 800 $10 $80 SIC $8,000 $16.000 $50,000 8 6,400 47,500 $74.000 70 Price per item Total revenue Purchase cost per item Total purchase costs Allocated fixed expenses (includes all labor) 95 14.000 67.900 27.040 $33,440 6.760 $20.760 16.900 $64.400 50.700 $118,600 Total costs Profit (loss) S(25440) S(4.760) $114,400) $ (44,600) Assignment 1. What is breakeven for the year? What concenis, if any, do you have about this breakeven figure? 2. Given that its preliminary nudget shows a sizable loss, EDI must consider ways to eliminate this loss. What budgetary options should managemeui consider? 3. EDI thinks it can increase the sales of its products by advertising in local newspapers, and has decided to spend $1.000 on advenising To get the most out of its advertising dollar, it has decided to concen- trate on one product only. Given financial concerns only, please discuss how it should decide which product to emphasice? 4. One of the managers of ED! has suggested that, since the company loses so much on shower nozzles, it should disentimie selling them. What advice would you give EDI about this decision