Northrop Grumman Corporation manufactures defense systems using job costing. In February 2038, the company incurs $750,000,000 in direct costs and $375,000,000 in overhead for a new radar system project.

Requirements:

• Allocate overhead costs using a predetermined overhead rate.
• Calculate the breakeven point in units and dollars.
• Perform a sensitivity analysis for changes in fixed and variable costs.
• Prepare a cost-volume-profit graph.
• Recommend strategic actions based on the break-even analysis.