IV. Case Requirements Acting in the role of C. J., answer each of the following questions as the talking point presentation to senior management: 1. Verify the current and projected (with the new technology) breakeven level reported by Wynona Hill. Calculate the degree of operating leverage (DO projected annual sales level of 5,000 units, first with the current technology (ass firm could, in fact, produce 5,000 units with the existing technology) and the proposed new technology. Interpret the calculated DOL figures and e significance of the higher DOL at the expected sales level with the prop technology. 2. Create a graph illustrating Nelson's total revenue curve and the two total cost C. J. is considering. Identify the two breakeven sales levels (calculated for above) on the graph. 3. Calculate the sales volume at which NOI for Nelson is the same under both methods and show that sales level on the graph. 4. Assume that Wynona's sales projections come from a normal distribution and the average price of the mix of guitars sold by Nelson is $800 per guitar. Superin the graph created for Question 2 a probability distribution of sales with an exp level, E(Q), of 5,000 units and a standard deviation of 1,100 units. (Be sure the the probability distribution extends beyond the breakeven level of output for production method.) What is the expected net operating income, E(NOI probability of an operating loss with the current technology? With the technology? Identify the areas of operating loss with each technology probability distribution. 5. Discuss how you would use your graph to explain the risk-reward implicati greater operating leverage inherent in the cost structure expected with the pro production process. 6. Assume that, upon further investigation, Wynona and her team conclude that standard deviation of the sales distribution is only 600 units rather than 1, 100 u are the recalculated loss probabilities associated with the current and