Need help to answer question number 4 please. Thank you.

Arena Tycoon Greta, majority stockholder and president of Pokmon, Inc., is working with her top managers on future plans for the company. As the company's managerial accountant, you've been asked to analyze the following situations and make recommendations to the leadership team. Requirements 1. The Games Division of Pokmon, Inc. has $3,850,000 in assets. Its yearly fixed costs are $670,000, and the variable costs of its product line are $1.40 per unit. The division's volume is currently 115,000 units. Competitors offer a similar product, at the same quality, to retailers for $13.75 each. Pokmon's management team wants to earn a 24% return on investment on the division's assets. a. What is the Games Division's target full product cost in total, and per unit? b. Given the division's current costs, if the product is sold at the going market price, will the division be able to achieve its target profit? Explain why or why not. The Games Division is considering an aggressive advertising campaign strategy to differentiate its product from the competitors. The division does not expect volume to be affected, but it hopes to gain more control over pricing. If the Games Division has to spend $60,000 next year to advertise, what will its cost-plus price be? Do you think the Games Division will be able to sell its product at the cost-plus price? Why or why not? d. Assume the Games Division has identified ways to cut its variable costs to $1.30 per unit, while keeping fixed costs the same. What is its new target full product cost? Will this decrease in variable costs allow the division to achieve its target profit? 2. The manager of the Quiz Division received the following operating income data for the past year: The manager of the division is Product Lines 999 Q1024 Total surprised that the Q99 Sales Revenue $300,000 $330,000 $630,000 product line is not profitable. Cost of Goods Sold: Variable 35,000 The accountant estimates 49,000 84,000 Fixed 210,000 66,000 276,000 that dropping the product Total COGS 245,000 115,000 360,000 line will decrease fixed COGS Gross Profit 55,000 215,000 270,000 Selling & Administrative Expenses: sold by $80,000, and Variable 61,000 72,000 133,000 decrease fixed selling and Fixed 43,000 24,000 67,000 Total S&G Expenses 104,000 96,000 200,000 administrative expenses by Operating Income (Loss) ($49,000) $119,000 $70,000 $17,000. a. Prepare a differential analysis to show whether or not the Quiz Division should drop the 99 product line. b. What is your recommendation to the manager of the Quiz Division? 3. The Test Division also produces two product lines. Because the division can sell all of the product it can produce, Pokmon, Inc., is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: Per Unit T895 T27 $45 Sales price $85 Variable costs 25 20 Contribution margin $60 $25 Contribution margin ratio 70.59% 55.56% After expansion, the factory will have a production capacity of 4,425 machine hours per month. The plant can manufacture either 20 units of T27s or 50 units of T895s per machine hour. a. Identify the constraining factor for the Test Division. b. Prepare an analysis to show which product line to emphasize. 4. The Sweepstakes Division is considering two expansion plans. Plan A would expand a current product line at a cost of $8,750,000. Expected annual net cash inflows are $1,525,000, with zero residual value at the end of 9 years. Under Plan B, the Sweepstakes Division would begin producing a new product at a cost of $8,250,000. Plan B is expected to generate net cash inflows of $1,050,000 per year for 10 years, the estimated useful life of that product line. Estimated residual value for Plan B is $950,000. The Sweepstakes Division uses straight-line depreciation and requires an annual internal rate of return (IRR) of 10%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. Will this meet what the Sweepstakes Division requires? C. Lay out each year and use Excel formulas to verify/validate the NPV calculations you made in Requirement 4(a) and the actual IRR for the two plans. How does the IRR of each plan compare with the company's required internal rate of return? d. The Sweepstakes Division must rank the plans and make a recommendation to Pokmon's leadership team. Which expansion plan should the Sweepstakes Division recommend? Why