Part B - Ixora Inc. Ixora Inc. currently sells its product for 6.25 per unit. The variable cost per unit is 1.90 and fixed costs are 200,000. Purchasing a new machine will increase fixed costs by 9,000, but variable costs will be cut by 0.20. Planned Sales units are 50,000. Required: A. What is the contribution per unit before the new machine is purchased? Part C - Lily Ltd. Lily Ltd has two investment proposals namely, Project Wow and Project Top, which are mutually exclusive projects. Both projects will require investment in new machines. Expected life span for both machines are 5 years each. Both machines will have zero scrap value. Cost of capital of the Lily Ltd stands at 10%. The projected cash flows are as follows. Year Project Wow Cash Flow ($) Project Top Cash Flow ($) (2 marks) B. What is the contribution per unit after the new machine is purchased? 0 -30,000 -15,000 (2 marks) 1 20,000 10,000 C. What is the breakeven point and safety margin expressed in units before the new machine is purchased? 2 9,000 9,000 3 7,000 7,000 (4 marks) D. What is the breakeven point and safety margin expressed in units after the new machine is purchased? 4 5,000 6,000 5 3,000 5,000 (4 marks) E. Should Sanyo, Inc., purchase the new machine? Why or why not? (3 marks) Required: F. The company is approached for special order to produce 60,000 units, at increased selling price at 14.00 each. Based on the special order, calculate the following: a. i. What is the total contribution and net profit before the new machine is purchased? (5 marks) ii. What is the total contribution and net profit after the new machine is purchased? Calculate the Payback Period, the Accounting Rate of Return (use the average investment technique), and Net Present Value of the machine, and provide recommendations as to whether the machine should be bought. (12 marks) (5 marks) b. iii. Provide your recommendation whether the special order accepted or rejected. (5 marks) Produce a report that explains and analyses the key merits and limitations of the differing investment appraisal techniques (Provide a minimum of three (3) advantages and three (3) disadvantages for each techniques). (Total 30 marks) C. (18 marks) Produce a report that identifies and explains the key benefits and limitations of using budgets as a tool for strategic planning. (20 marks) (Total 50 marks)