Lockheed Martin Corporation manufactures defense equipment using job costing. In July 2037, the company incurs $600,000,000 in direct costs and $300,000,000 in factory overhead for a missile system project.

Requirements:

• Allocate overhead costs using a predetermined overhead rate.
• Calculate the breakeven point for the project.
• Perform cost-volume-profit analysis to determine the impact of changes in cost and volume.
• Prepare a CVP graph for the project.
• Make strategic recommendations based on the CVP analysis.