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In Project 3 you will analyse managerial and costing information to improve the company's EBITDA. You will use what you have learned about cost behavior
In Project 3 you will analyse managerial and costing information to improve the company's EBITDA. You will use what you have learned about cost behavior and apply activity-based costing and cost-volume-profit analysis to make recommendations about LGI's operational productivity. Step 1: Use the information you calculated in Project 2 Tab 3 Profit Maximization to populate has Columns C to H in Question 1. Step 2: Assume the company operates for 12 months of the year convert the information you populated in Columns C to H to annual information and populate Columns I to M for both the Standard and Deluxe Boxes. Step 3: Assume for this project that the only variable costs in this company are materials and labour. All other overhead costs will be assumed to be fixed. Note: The Total Fixed Cost of 156 is supposed to be constant for the production of total boxes including Standard Box and Deluxe Box on Tabs 1, 2, and 3. On Tab 1, the total fixed costs of 156 are allocated based on a lump sum method (arbitrarily using a monthly allocation basis). On Tab 2, the total fixed costs of 156 are allocated based on the sales volume (the number
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